Compound Annual Growth Rate CalculatorFree online financial calculator — instant results, no sign-up
Find annualized growth between two positive values with no interim cash flows.
Estimates only, based on the inputs and assumptions shown. This is not financial, investment, tax, or legal advice. Prices, rates and local rules may change; crypto scenarios do not predict returns. Confirm important decisions with a qualified professional.
Sign in to save results and favorites.
About the Compound Annual Growth Rate Calculator
The Compound Annual Growth Rate Calculator finds the constant annual growth rate that connects a positive beginning value to a positive ending value over a specified number of years. It is designed for investments with no interim deposits or withdrawals. With a beginning value of $10,000, an ending value of $18,000, and an elapsed time of 5 years, the compound annual growth rate is 12.47%.
- Beginning value ($)
- The investment's positive starting value in dollars, with a default of $10,000.
- Ending value ($)
- The investment's positive final value in dollars, with a default of $18,000.
- Elapsed time (years)
- The positive duration between the beginning and ending valuations in years, with a default of 5 years.
Formula and method
CAGR = [(E / B)^(1 / t) − 1] × 100%; with the default inputs: [(18000 / 10000)^(1 / 5) − 1] × 100% ≈ 12.47%.
- CAGRCompound annual growth rate, expressed as an annual percentage.
- BPositive beginning value in dollars.
- EPositive ending value in dollars.
- tElapsed time in years, which must be greater than zero.
Divide the ending value by the beginning value to obtain the total growth factor. Raise that factor to the power of one divided by elapsed years to obtain the equivalent annual growth factor. Subtract one and multiply by 100 to express the result as a percentage. For the default inputs, the total growth factor is 1.8 and the annual growth factor is approximately 1.124746, giving a CAGR of 12.47% when rounded to two decimal places.
Worked example
These are the calculator's starting values and the results it actually produces for them.
Inputs
- Beginning value10000 $
- Ending value18000 $
- Elapsed time5 years
Results
- Compound annual growth rate12.47%
How to use the Compound Annual Growth Rate Calculator
- 1Enter the beginning value in dollars; use 10000 for the worked example.
- 2Enter the ending value in dollars; use 18000 for the worked example.
- 3Enter the elapsed time in years; use 5 for the worked example.
- 4Confirm that both values and the elapsed time are positive and that there were no interim deposits or withdrawals.
- 5Calculate and read the compound annual growth rate; the default inputs produce 12.47%.
Reading your result
The Compound annual growth rate output shows the equivalent constant yearly percentage change between the two values. The default result of 12.47% means that $10,000 growing at approximately that compounded annual rate for 5 years would reach $18,000. It is an annualized rate, not the total percentage gain or a claim that the investment earned the same return every year. A positive result indicates growth, a negative result indicates decline, and zero indicates unchanged value.
Limitations
This calculation requires positive beginning and ending values and a positive elapsed time. It assumes no interim cash flows; deposits or withdrawals can make the result misleading as a measure of investment performance. CAGR hides volatility and the sequence of yearly returns, and it does not predict future returns. It makes no separate adjustment for taxes, fees, or inflation; any effects already reflected in the supplied values remain embedded in the result. Distributions must be consistently included in the investment values, such as through reinvestment, to measure total growth. Display rounding may prevent the reported rate from reproducing the ending value exactly.
Common questions
Why is the CAGR 12.47% rather than the total gain divided by 5?+
Growth from $10,000 to $18,000 is an 80% total gain. Dividing that gain by 5 gives a simple annual allocation, not a compound growth rate. CAGR instead takes the fifth root of 1.8, subtracts one, and converts the result to a percentage.
Can this calculator produce a negative CAGR?+
Yes. If the ending value is below the beginning value but both remain positive, the calculator returns a negative annualized growth rate. A zero or negative investment value is outside this tool's supported inputs.
Can I use CAGR if I added or withdrew money during the investment period?+
Not as a reliable measure of investment performance using only these inputs. The change in value would mix investment growth with cash flows. Use a money-weighted return calculation with dated cash flows, or a time-weighted return calculation with valuations around those flows.
Can elapsed time include a fraction of a year?+
Yes. The formula supports any positive elapsed time in years, including fractional years. Enter the actual duration consistently rather than rounding to whole years, because the duration directly affects the annualized rate.
Does the calculator save my information?+
Calculations run in your browser. While signed in, inputs and results are automatically recorded in account history; saving a result creates a separate saved record.
You might also like
Interest Calculator
Growth of savings with compound interest and regular deposits.
Investment Calculator
Project an investment with monthly contributions.
Finance Calculator
Solve for future value from present value, rate, periods and payment.
Compound Interest Calculator
Compare compounding frequencies and see the effective rate.
Interest Rate Calculator
Find the rate on a loan from amount, payment and term.
Savings Calculator
How savings grow with deposits, interest and tax.
Results are estimates for informational purposes and are not financial, medical or legal advice.