CAGR Calculator
Enter a starting value, an ending value and the number of years to see the compound annual growth rate, the total growth and a year-by-year table. You can also work forward from a rate to a future value, or find how long it takes to reach a target, with the exact doubling time and the rule of 72 estimate. Everything runs in your browser.
| Year | Value at the CAGR |
|---|---|
| 0 | 10,000.00 |
| 1 | 11,486.98 |
| 2 | 13,195.08 |
| 3 | 15,157.17 |
| 4 | 17,411.01 |
| 5 | 20,000.00 |
The compound annual growth rate is the steady yearly rate that would take a starting value to an ending value over a number of years: CAGR = (ending / starting) to the power of (1 / years), minus 1. It smooths out the ups and downs, so it says nothing about the path in between. It is not the same as the simple average of yearly changes, which is higher whenever growth is positive. Past growth does not predict future returns. Everything is worked out in your browser and nothing is uploaded.
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Math & MoneyAbout the CAGR Calculator
The compound annual growth rate is the steady yearly rate that would take a starting value to an ending value over a number of years. The formula is CAGR = (ending / starting) to the power of (1 / years), minus 1. For 10,000 growing to 20,000 over 5 years the CAGR is 14.87 percent, even if the path in between was bumpy. It is not the same as the simple average of the yearly changes, which is higher whenever growth is positive, because it ignores compounding. Years can be fractions, such as 2.5. The future value tab applies a rate for a number of years, and the time tab solves for the years with ln(target / start) divided by ln(1 + rate). The doubling time is ln 2 divided by ln(1 + rate), so at 7 percent it is 10.24 years, and the rule of 72, which divides 72 by the rate in percent, gives 10.29, close for rates between about 6 and 10 percent. The starting value must be above zero, and an ending value of zero gives a CAGR of minus 100 percent. CAGR describes the past and smooths over the ups and downs. It does not predict returns, and it ignores the risk taken along the way. Nothing is uploaded.
How do I calculate CAGR?▾
Divide the ending value by the starting value, raise the result to the power of 1 divided by the number of years, and subtract 1. For 10,000 growing to 20,000 over 5 years, 2 to the power of 0.2 is 1.1487, so the CAGR is 14.87 percent.
What is the difference between CAGR and average annual return?▾
The average return adds up the yearly changes and divides by the number of years. CAGR is the steady rate that gives the same final value with compounding. A 50 percent gain followed by a 50 percent loss averages 0 percent, but the money ends 25 percent lower, and the CAGR shows that.
What is a good CAGR?▾
It depends on what you compare it with, such as inflation, a market index or your own target. A CAGR means little without the period and the risk. The tool shows the number and leaves the judgment to you.
How long does it take to double my money?▾
Use ln 2 divided by ln(1 + rate). At 7 percent that is about 10.24 years, and at 10 percent about 7.27. The rule of 72 gives a quick estimate by dividing 72 by the rate in percent.
Can CAGR be negative?▾
Yes. If the ending value is lower than the starting value, the CAGR is negative, and a value that falls to zero gives minus 100 percent. The starting value must be greater than zero. Nothing you enter is uploaded.