CAGR Calculator — Compound Annual Growth Rate
Free CAGR calculator. Calculate the compound annual growth rate of an investment or metric.
Formula: (End Value / Start Value)^(1/Years) - 1
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What Is This Calculator?
Compound Annual Growth Rate (CAGR) smooths out the growth rate of an investment or metric over multiple years, assuming it grew at a steady rate compounded annually. It is the gold standard for comparing growth rates across different time periods and investments.
How to Calculate
To calculate CAGR: 1) Find the starting value. 2) Find the ending value. 3) Count the number of years. 4) Apply the formula. Formula: CAGR = (End / Start)^(1/Years) − 1. Multiply by 100 for a percentage.
Examples
Example: An investment grows from $10,000 to $25,000 over 5 years. CAGR = ($25,000 / $10,000)^(1/5) − 1 = 0.2011 = 20.11% annual growth.
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Morningstar uses CAGR extensively for reporting fund and stock performance over standardized periods.
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