CAGR Calculator: Formula and Examples
Find the annualized compounded rate between a starting and ending investment value.
How the calculation works
CAGR assumes no intervening contributions or withdrawals. For cash flows during the holding period, a money-weighted or time-weighted method is needed instead.
CAGR formula
CAGR = [(ending value ÷ starting value)^(1 ÷ years) − 1] × 100.
Worked example
Doubling from $10,000 to $20,000 over five years gives approximately 14.8698% CAGR.
Inputs, assumptions, and interpretation
Amounts and rates apply only to the defined scenario. For projections, returns remain constant and timing follows the selected input. Taxes, market variability, and unentered costs are excluded.
Displayed values are rounded, while calculations use unrounded numbers. The charts show modeled values rather than historical performance. For background, see Investor.gov introduction to investment returns.
Frequently asked questions
Does this result predict future returns?
No. The calculation summarizes the values entered. An illustrative chart or a historical return is not a forecast.
Can I use CAGR when I add money during the period?
CAGR uses only the start, end, and elapsed time. External contributions and withdrawals need a cash-flow-aware return calculation.
How should I interpret a negative result?
A negative return indicates that ending proceeds or value were below the investment cost under the entered scenario.