CAGR Calculator · Compound Annual Growth Rate

CAGR Calculator

Compound Annual Growth Rate · Total return · Doubling time · Year-by-year projection.

Currency
Investment Details
$
$
years
Formula: CAGR = (Ending ÷ Beginning)1/Years − 1  ·  Total Return = (Ending − Beginning) ÷ Beginning
Results
✅ Solid Growth
CAGR: 20.1%
Total return: 150.0% over 5 years
📈 CAGR
—
💰 Total Return
—
📊 Absolute Gain
—
⏱️ Doubling Time
—
Beginning
—
Ending
—
Years
—
Multiple
—
💡 Interpretation
Your investment grew from $10,000 to $25,000 over 5 years — a compound annual growth rate of 20.1%.
📋 CAGR Reference Ranges
Loss: < 0%
Modest: 0–5%
Good: 5–10%
Excellent: ≥ 10%
Year-by-Year Growth at CAGR
YearValue at CAGRGain This Year% of Final Value

Powered by Toolraxy

`; embedCodeTextarea.value = ``; }window.toggleEmbedPanel = function() { if (embedPanel.style.display === 'none' || embedPanel.style.display === '') { generateEmbedCode(); embedPanel.style.display = 'block'; } else { embedPanel.style.display = 'none'; } };window.copyEmbedCode = function() { embedCodeTextarea.select(); navigator.clipboard?.writeText(embedCodeTextarea.value).then(() => alert('Embed code copied!')).catch(() => alert('Press Ctrl+C')); };document.addEventListener('DOMContentLoaded', function() { populateCurrency();currencySelect.addEventListener('change', function(e) { const found = currencies.find(c => c.code === e.target.value); if (found) currentCurrency = found; updateCurrencySymbols(); calculateCAGR(); });modeRadios.forEach(r => r.addEventListener('change', function() { cagrInputWrap.style.display = this.value === 'rate' ? 'block' : 'none'; calculateCAGR(); }));[beginValue, endValue, yearsInput, cagrInput].forEach(el => { el.addEventListener('input', calculateCAGR); el.addEventListener('change', calculateCAGR); });calculateCAGR(); }); })();

ADVERTISEMENT

Relevant Tools

Creator & Maintainer

Image of Faiq Ur Rahman, CEO & Founder Toolraxy

Faiq Ur Rahman

Founder & CEO, Toolraxy

Faiq Ur Rahman is a web designer, digital product developer, and founder of Toolraxy, a growing platform of web-based calculators and utility tools. He specializes in building structured, user-friendly tools focused on health, finance, productivity, and everyday problem-solving.

View Profile

Share:

Rate this Tool

User Ratings:

0
0 out of 5 stars (based on 0 reviews)
Excellent
Very good
Average
Poor
Terrible

ADVERTISEMENT

ADVERTISEMENT

What Is CAGR?

CAGR is the compound annual growth rate: the single annual rate that would take a beginning value to an ending value if growth were steady and reinvested every year. It matters because total return alone hides the pace of growth.

Two investments can both gain 50%, but one may take three years and another may take twelve. CAGR puts them on the same annual scale. That makes it useful for comparing funds, business revenue, savings products, property, and any series with a start and end point. CAGR is not the actual path of returns. It smooths volatility into one representative rate.

How to Use the CAGR Calculator

  1. Select a currency so every monetary result uses the symbol you expect.

  2. Choose whether you know your beginning and ending values or your CAGR percentage.

  3. Enter the beginning value for the starting point of the period.

  4. Enter the ending value when using value mode, or type a CAGR when using rate mode.

  5. Set the number of years. The field accepts 0.1 to 100.

  6. Click a quick example if you want to load a common growth pattern.

  7. Press Calculate to refresh CAGR, total return, gain, doubling time, and the projection table.

  8. Use Copy, Share, or Embed when you want to save or reuse the result.

 

How the CAGR Calculator Formula Works

The calculator finds the steady annual rate that connects a beginning value to an ending value over a set number of years, assuming compounding.

Formula: CAGR = (Ending Value ÷ Beginning Value)^(1 ÷ Years) − 1

Formula: Ending Value = Beginning Value × (1 + CAGR)^Years

Formula: Total Return = (Ending Value − Beginning Value) ÷ Beginning Value

Formula: Absolute Gain = Ending Value − Beginning Value

Formula: Multiple = Ending Value ÷ Beginning Value

Formula: Doubling Time = ln(2) ÷ ln(1 + CAGR)

Formula: Rule of 72 estimate = 72 ÷ CAGR%

Formula: Year value at CAGR = Beginning Value × (1 + CAGR)^t

The mode toggle changes which side of the equation is solved. In value mode, beginning and ending values produce CAGR. In rate mode, beginning value and CAGR produce an ending value. Years must be at least 0.1 and no more than 100. Beginning and ending values accept zero or positive numbers. CAGR input accepts −100% to 200%. If beginning value is positive and ending value is zero, CAGR becomes −1, representing a complete loss. If beginning value is zero or negative, or ending value is negative, the interpretation asks for values greater than zero. The growth table projects up to 50 yearly rows using the computed CAGR. Currency selection changes the displayed symbol only; it does not convert between currencies.

 

Worked Example

An investor puts $18,000 into a fund. After 6 years, the account is worth $31,000. What was the compound annual growth rate?

Step 1: Divide ending value by beginning value. $31,000 ÷ $18,000 = 1.7222.

Step 2: Raise that ratio to the power of 1 ÷ 6. 1.7222^(0.1667) ≈ 1.09485.

Step 3: Subtract 1 to get the CAGR. 1.09485 − 1 = 0.09485, or about 9.49%.

Step 4: Calculate total return. ($31,000 − $18,000) ÷ $18,000 = $13,000 ÷ $18,000 = 72.22%.

Step 5: Find the absolute gain. $31,000 − $18,000 = $13,000.

Step 6: Estimate doubling time. ln(2) ÷ ln(1.0949) ≈ 7.65 years. The Rule of 72 gives 72 ÷ 9.49 ≈ 7.59 years.

Step 7: Review the year-by-year table. The calculator shows the value compounding from $18,000 toward $31,000, with each year’s gain and the percentage of the final value reached.

The takeaway: a 9.49% CAGR turns $18,000 into $31,000 over six years. That rate sits in the “Good” range on the calculator’s badge scale and is close to long-run stock market averages.

Frequently Asked Questions

What does CAGR measure?

CAGR measures the steady annual rate that connects a beginning value to an ending value over a period, assuming gains are reinvested. It smooths out year-to-year volatility into one comparable growth figure.

 

How is CAGR different from average annual return?

Average annual return adds yearly returns and divides by the number of years. CAGR uses compounding and a geometric path, so it reflects the actual end value more accurately when returns vary.

 

Can the CAGR Calculator project a future value?

Yes. Switch to CAGR mode, enter a beginning value, a CAGR percentage, and a number of years. The calculator computes the ending value and fills it into the ending value field.

 

What happens if my ending value is zero?

If the beginning value is positive and the ending value is zero, the calculator sets CAGR to −100%. That represents a complete loss over the period.

 

Why does the calculator ask for years with decimals?

The years field accepts decimals so you can model holding periods such as 2.5 years or 18 months. The growth table rounds up to the next full year for display, capped at 50 rows.

 

Is CAGR the same as total return?

No. Total return measures the overall percentage change from beginning to ending value. CAGR converts that total change into an equivalent annual compounded rate.

 

What is doubling time in this calculator?

Doubling time estimates how long an investment would take to double at the computed CAGR. It uses the natural logarithm formula and also shows the Rule of 72 approximation.

 

Does changing currency affect the CAGR result?

No. Currency selection changes the symbol shown beside monetary values. It does not convert amounts or alter the percentage-based CAGR.

 

Can CAGR be negative?

Yes. A negative CAGR means the ending value is lower than the beginning value. The calculator labels this as a loss and still reports total return, gain, and the projected decline.

 

What is the Rule of 72?

The Rule of 72 is a quick estimate for doubling time: divide 72 by the annual growth rate percentage. The calculator displays it alongside the more precise logarithmic doubling time.

 

Is this CAGR Calculator suitable for business revenue?

Yes. Revenue, profit, user counts, portfolio values, and other financial series can be compared with CAGR as long as you have a beginning value, ending value, and time period.

 

Why does my result say “Modest” or “Excellent”?

The badge uses fixed ranges: Loss below 0%, Modest from 0% to 5%, Good from 5% to 10%, and Excellent at 10% or higher. These are general guides, not personalized investment ratings.

Financial Disclaimer

This CAGR Calculator provides educational estimates only. It is not investment, financial, tax, or legal advice. Results depend entirely on the beginning value, ending value, years, and CAGR you enter. CAGR smooths volatility and does not show the actual path of returns, fees, taxes, inflation, or risk. Past performance does not guarantee future results. For investment decisions, consult a qualified financial professional.

ADVERTISEMENT

ADVERTISEMENT