Quick answer
Compound annual growth rate CAGR = (end value ÷ start value)^(1 ÷ years) − 1. An investment that grows from $1,000 to $2,000 in 5 years has a CAGR of 14.8698%.
Enter the beginning value, ending value and years. The calculator returns the CAGR.
Related tools: Investment Calculator: Project investment growth from a rate of return you choose. Retirement Calculator: Projected savings at retirement from your contributions and expected return. 401(k) Calculator: Projected 401(k) balance with salary growth and employer match.
How to use the CAGR Calculator
- Enter beginning value (above 0).
- Enter ending value (above 0).
- Enter years (above 0).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Beginning value | A number | > 0 |
| Ending value | A number | > 0 |
| Years | A number | > 0 |
Formula and method
Formula
CAGR = (end ÷ start)^(1 ÷ years) − 1
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Constant annual rate that grows the start value to the end value.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Beginning value = 1000; Ending value = 2000; Years = 5.
| Result | Value |
|---|---|
| CAGR | 14.8698 % |
Example 2
Inputs: Beginning value = 100; Ending value = 100; Years = 3.
| Result | Value |
|---|---|
| CAGR | 0 % |
Example 3
Inputs: Beginning value = 200; Ending value = 100; Years = 1.
| Result | Value |
|---|---|
| CAGR | -50 % |
The first line is the headline result (cAGR). IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
A smoothed rate
CAGR is the constant yearly rate that would give the same result: 1,000 × 1.148698^5 = 2,000. The real path may have been bumpy. Values must be positive; a negative CAGR indicates decline.
Rule of 72 check
72 ÷ 14.87 is about 4.8 years, so doubling in 5 years is consistent. CAGR ignores the timing of deposits and withdrawals, for which IRR is better.
How the result changes with beginning value
Holding every other input at the first worked example, this table changes only beginning value. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Beginning value | CAGR |
|---|---|
| 500 | 31.9508 % |
| 1000 | 14.8698 % |
| 2000 | 0 % |
| 4000 | -12.9449 % |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Beginning value: entering "0" shows "Beginning value must be greater than 0." beside that field and no result.
Choosing between the CAGR Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Investment Calculator](/finance/investment-calculator/) | initial amount, annual interest rate and years | Projected value |
| [Retirement Calculator](/finance/retirement-calculator/) | current age, retirement age and current savings | Projected savings at retirement |
| [401(k) Calculator](/finance/401k-calculator/) | annual salary, your contribution and employer matches this share of your contribution | Projected balance |
| [Compound Interest Calculator](/finance/compound-interest-calculator/) | initial amount, annual interest rate and years | Future value |
| [Financial Calculator](/finance/financial-calculator/) | solve for, periods per year and payments | Future value (FV) |
Background: interest, saving and investing
A nominal rate (APR) does not include the effect of compounding; the annual percentage yield (APY) does: APY = (1 + r/n)^n − 1. A 5% nominal rate compounded annually is 5.000%, semi-annually about 5.063%, quarterly about 5.095% and monthly about 5.116%, so more frequent compounding helps, but with diminishing returns.
The rate you enter in a projection is an assumption, not a promise: real returns vary and can be negative. Fees and taxes are not modelled unless the page says so.
Assumptions and limitations
- Values must be positive
- Negative CAGR indicates decline
Results are estimates for planning, not financial advice. Lender terms, fees, taxes and rounding rules can change real figures, so confirm important numbers with your lender or a licensed adviser.
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for beginning value to confirm this.
Frequently asked questions
Is CAGR a forecast?
No, it describes the past.
How is CAGR different from average return?
CAGR is the geometric average.
Can I use months?
Enter years as a decimal, e.g. 2.5.
What does the CAGR Calculator calculate?
Compound annual growth rate between two values. It returns CAGR.
What formula does the CAGR Calculator use?
CAGR = (end ÷ start)^(1 ÷ years) − 1. Constant annual rate that grows the start value to the end value.
What do I need to enter in the cAGR Calculator?
You enter Beginning value, Ending value and Years.
How is the result rounded or limited?
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice. Values must be positive.
What are the limits of this calculator?
Values must be positive. Negative CAGR indicates decline.
What is an example of a cAGR result?
With beginning value 1000, ending value 2000 and years 5, the cAGR is 14.8698 %.
Can I rely on this calculator for a decision?
Results are estimates for planning, not financial advice. Lender terms, fees, taxes and rounding rules can change real figures, so confirm important numbers with your lender or a licensed adviser. For this calculator in particular: Values must be positive.
Related calculators
- Investment Calculator — Project investment growth from a rate of return you choose.
- Retirement Calculator — Projected savings at retirement from your contributions and expected return.
- 401(k) Calculator — Projected 401(k) balance with salary growth and employer match.
- Compound Interest Calculator — Future value with compound interest and regular contributions.
- Financial Calculator — Time-value-of-money solver for N, rate, present value, payment or future value.
- IRR Calculator — Internal rate of return of an investment from its yearly cash flows.
- Present Value Calculator — Today's value of a future amount at a given discount rate.
- Mutual Fund Calculator — Growth of a fund investment after its expense ratio.
- WACC Calculator — Weighted average cost of capital.
Sources
- Standard time-value-of-money relations (e.g. Brealey, Myers & Allen, Principles of Corporate Finance)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.