Savings & Investment

CAGR Calculator

Calculate compound annual growth rate from beginning value, ending value, and years.

CAGR = (Final / Initial)^(1 / years) - 1

What this calculator does

Calculate the smoothed compound annual growth rate between a positive beginning value and ending value with no intermediate cash flows.

Scope, period, and currency

This page runs a local formula from user-entered values. The country/currency selector changes money symbols and formatting only: it does not perform live or historical FX conversion or automatically change contract, tax, accounting, or regulatory rules. Convert all amounts into one currency first and keep periods and metric definitions consistent.

Formula variables

B: Beginning value, greater than zero.
E: Ending value, greater than or equal to zero.
t: Elapsed years, greater than zero.

Formula and worked example

Formula: CAGR = (E ÷ B)^(1 ÷ t) − 1.

Recalculation: $12,000 grows to $26,000 over 6 years with no intermediate cash flows: CAGR = 13.75%; total return = 116.67%; gain = $14,000.

Model assumptions

There are no contributions, withdrawals, or distributions between endpoints.
The elapsed period is positive and measured consistently.
CAGR smooths volatility and does not describe each year's actual return.

Reading the result and model boundary

Use CAGR to compare endpoint growth over different positive periods.
Use IRR/XIRR or cash-flow analysis when intermediate cash flows exist.

CAGR is a smoothed endpoint rate, not an investor cash-flow return or risk measure.

How to use it

Enter beginning value, ending value, and elapsed years.
Confirm no intermediate cash flow needs attribution.
Compare CAGR with the actual year-by-year path and risk.

Common incorrect uses

Entering zero years.
Ignoring contributions or withdrawals.
Presenting CAGR as the return achieved in every individual year.

Suggested verification workflow

Verify endpoint dates and values.
Calculate CAGR.
Reconcile with cash flows and period volatility.

FAQ

Does CAGR include intermediate contributions?

No. Use a cash-flow return method such as XIRR when they exist.

Did the investment earn the CAGR every year?

Not necessarily. CAGR smooths the endpoint change into one equivalent annual rate.

Does currency selection perform conversion?

No. It changes formatting only; beginning and ending values must use one currency.

Method and review boundary

Results are calculated locally in the browser from the formula shown on this page. The tool does not retrieve live rates, quotes, approvals, or billing data. Last reviewed: July 24, 2026.

Use the result for first-pass estimates, scenario comparison, and question preparation; it is not financial, investment, tax, accounting, or legal advice.

Authoritative sources and notes

Calculate CAGR - Microsoft
Evaluating investment performance - FINRA
Investment return components - FINRA

Sources checked July 24, 2026. Rates, product rules, and official guidance can change; verify them again before a formal decision.