FinanceCalcs
CAGR Calculator
Calculate the Compound Annual Growth Rate of any investment — or work in reverse to project a future value or find how long it takes to reach a target. Compare growth rates across any time period with a single annualized number.
Works for investments, business revenue, portfolio returns, and any value that grows over time.
CAGR Calculator
- Value at CAGR
"Compound interest is the eighth wonder of the world. He who understands it, earns it."
— Often attributed to Albert Einstein
What is a CAGR calculator?
A CAGR calculator tells you the Compound Annual Growth Rate of any investment or value — the steady annual rate that would take you from a starting value to an ending value over a given number of years.
CAGR smooths out year-to-year volatility into a single comparable number, making it easy to benchmark one investment against another regardless of time period. It answers the question: "What was the equivalent annual return on this investment?"
This calculator also works in reverse — enter a CAGR and starting value to project a future end value, or enter a starting value, target, and CAGR to calculate how many years it takes to get there.
lightbulb Example CAGR Scenario
Suppose you invested $10,000 and it grew to $18,000 over 7 years. The CAGR would be approximately 8.76% per year — even if some years were up 20% and others were down 5%.
Using the reverse mode, if you want to know what a $10,000 investment grows to at 8% CAGR over 10 years, the calculator shows an end value of approximately $21,589.
CAGR is especially useful for comparing two investments that grew over different time periods — it puts them on equal footing by expressing both as an annual rate.
Investors, analysts, and business owners use a CAGR calculator to measure portfolio performance, evaluate revenue growth, and set realistic long-term return expectations.
CAGR Calculator FAQs
What is CAGR used for?
CAGR is used to measure and compare the growth rate of investments, business revenue, or any value over time. It strips out year-to-year volatility and gives a single annualized rate that makes it easy to compare performance across different assets or time periods.
What is a good CAGR?
It depends on the context. For stock market investments, a CAGR of 7–10% is often cited as a long-term historical average. For individual stocks or businesses, higher CAGRs are possible but typically come with more risk. Always compare CAGR against a relevant benchmark.
What is the difference between CAGR and average annual return?
Average annual return simply averages yearly percentage gains. CAGR accounts for compounding and gives the true annualized rate that connects your starting and ending values. CAGR is generally the more accurate measure of long-term investment performance.
What is the Rule of 72?
The Rule of 72 is a quick way to estimate how long it takes an investment to double. Divide 72 by the CAGR to get the approximate number of years. At 8% CAGR, an investment doubles in roughly 9 years (72 ÷ 8 = 9).
CAGR terminology
CAGR Formula
CAGR = (End Value ÷ Start Value) ^ (1 ÷ Years) − 1. Expressed as a percentage, this gives the annualized growth rate between any two values.
Total Return
The overall percentage gain from start to end value, regardless of how many years it took. Total Return = (End Value − Start Value) ÷ Start Value × 100.
Rule of 72
A quick mental math shortcut: divide 72 by the CAGR to estimate how many years it takes an investment to double. At 9% CAGR, an investment doubles in roughly 8 years.
Absolute Return vs. CAGR
A 120% total return sounds impressive, but spread over 12 years the CAGR is only about 7% annually — showing why adjusting for time matters when comparing investments.
End Value Projection
Given a starting value and a CAGR, the projected end value after N years is: Start Value × (1 + CAGR) ^ Years. This is the reverse calculation mode in the calculator above.
Disclaimer: All calculators on this site are provided for informational and educational purposes only. Results are estimates based on the inputs you provide and mathematical formulas — they do not account for taxes, fees, inflation, risk, or other real-world factors that may affect financial outcomes. Past performance does not guarantee future results. Nothing on this site constitutes financial, investment, legal, or tax advice. Always consult a qualified professional before making financial decisions.
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