How to calculate CAGR
Use values from the same series at two dates.
1
Enter the starting value
Use the value at the beginning of the period.
2
Enter the ending value
Use the value at the end, with no contributions or withdrawals.
3
Set the number of years
Use the exact elapsed time, including fractions of a year.
What does this tool do?
CAGR removes the noise of individual years and expresses total growth as a single annual rate. It assumes a steady path and ignores volatility along the way.
The Formula
CAGR = (Ending value ÷ Beginning value)^(1 ÷ Years) − 1Frequently Asked Questions
Is CAGR the same as an average annual return?
No. CAGR accounts for compounding and usually differs from the arithmetic average of yearly returns.
Can CAGR be negative?
Yes. A loss over the period produces a negative CAGR, and an ending value of zero gives −100%.