CAGR Calculator
The steady yearly growth rate between a starting and an ending value.
Good to know. Doubling in five years is about 14.9% a year. The rule of 72 gets you close in your head.
Not financial advice. Uses only the numbers and rates you enter — no live data.
How it works
In plain words
Divide the ending value by the starting value, take that to the power of one over the number of years, and subtract one.
The formula
CAGR = (end ÷ start)^(1 ÷ years) − 1
Worked example
Growing from 10,000 to 20,000 in 5 years: 2^(1/5) − 1 = 14.87% a year, compounded.
Sources
- Brealey, Myers and Allen, Principles of Corporate Finance, chapter 2 The standard formulas for loan payments, compounding and present value, the same as a spreadsheet’s PMT and FV.
Sources checked October 3, 2026. 4 automated tests check its answers on every change.
About the CAGR calculator
CAGR, the compound annual growth rate, answers one question: what steady yearly rate would take this starting value to that ending value? It smooths out the ups and downs along the way into a single comparable number.
It is used for investments, a company’s revenue, a city’s population or a website’s traffic: anything measured at two points in time. Doubling over five years is a CAGR of 14.87%, because 1.1487 multiplied by itself five times is 2.
It is not the same as the average of the yearly changes. A value that rises 50% and then falls 50% has an average change of 0% but ends 25% lower, a CAGR of about −13.4%. CAGR always gives the rate that actually connects the start and the end.
It ignores money added or taken out along the way; for regular contributions, use the investment return calculator. Years can be fractional: 18 months is 1.5 years. The rule of 72 gives a quick check: 72 divided by the yearly rate is roughly the years to double.
Questions people ask
How do I calculate CAGR?
CAGR = (end ÷ start)^(1 ÷ years) − 1. From 10,000 to 20,000 in 5 years: 2^0.2 − 1 = 14.87%.
What is the difference between CAGR and average return?
The average of yearly returns ignores compounding. CAGR is the single rate that links the first and last value, so it is never higher than the average.
Can CAGR be negative?
Yes, when the ending value is lower than the starting one.