CAGR Calculator
Calculate the Compound Annual Growth Rate between two values.
How this works
CAGR = (Final value ÷ Initial value)1/years − 1. It smooths out volatility to express growth as a single annualized rate — useful for comparing investments over different time periods, but it hides the actual year-to-year ups and downs.
Frequently asked questions
Why is CAGR different from average annual return?
CAGR is a compounded rate; simple averaging of yearly returns overstates growth when returns are volatile. CAGR reflects the smoothed, effective annual rate.
Can I use this for negative growth?
Yes — if the final value is lower than the initial value, CAGR will come out negative, correctly showing a decline.