CAGR Calculator
Calculate the compound annual growth rate between two amounts. The rate is solved from your figures. No market data is used.
How it is calculated
CAGR = (ending ÷ starting)^(1 / years) − 1
- Years can include extra months. 1 year and 6 months is 1.5 years.
- Both amounts must be above zero. A loss shows as a negative CAGR.
- CAGR is the constant annual rate that links the two amounts. It hides the path in between.
This is a projection or a description of the numbers you type. It is not financial advice.
One rate for the whole period
CAGR answers a narrow question: what constant annual rate would take the starting amount to the ending amount in this time? It is not the average of yearly returns, and it says nothing about volatility along the way.
Enter the values from your own statement. This page does not look up a scheme.
Questions
How is CAGR different from absolute return?
Absolute return is the total percent change, with no regard to time. CAGR spreads that change over the years as a compound rate. A 100% gain over 10 years is a much smaller CAGR than a 100% gain over 1 year.
Can CAGR be negative?
Yes. If the ending value is below the starting value, the annualised rate is negative.
Why do I also enter months?
A holding period is often not a whole number of years. Extra months are added as twelfths of a year.
Does this match XIRR?
Only when there is a single investment and a single ending value. If you added or withdrew money in between, use the XIRR calculator.
Is the rate a prediction?
No. It describes the two numbers you typed. It does not forecast the next year.