CAGR Calculator
Compute compound annual growth rate and solve for beginning value, final value, or time to reach a target.
Key Results
Used when solving for value or time
CAGR
20.11 %
Annualized growth rate
Total Return
150.00 %
Overall growth
Time (years)
5.00
Duration in years
How we calculate
CAGR is computed as ((FV / BV)^(1/t)) - 1. Time is converted to years based on your selected unit. When solving for time or values, we rearrange the formula accordingly.
Quick Answer
CAGR is the constant annual growth rate that takes an investment from its beginning value to its final value over a time period. It is calculated as ((Final / Beginning)^(1 / Years) - 1).
Key Facts
- CAGR smooths returns into a single annual rate
- Use time in years for CAGR; convert other units to years
- Total return = (Final - Beginning) / Beginning
- Effective annual rate equals the CAGR when compounding annually
What if the time period changed?
See how different investment durations affect your CAGR
Personalized Insights
3 insights based on your inputs
Outstanding Growth Rate
20.1% CAGR significantly outperforms most asset classes. This level of growth is exceptional and hard to sustain long-term.
Doubled Your Investment
Your 150% total return means your money more than doubled. The Rule of 72: at 20.1% CAGR, money doubles every 3.6 years.
CAGR vs Average Returns
CAGR accounts for compounding and volatility, giving a more accurate picture than simple average returns. Use CAGR when comparing investments.
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Frequently Asked Questions
CAGR (Compound Annual Growth Rate) is the constant annual rate needed for an investment to grow from its beginning value to its ending value over a set period.
Enter your current balance as the beginning value, your goal balance as the final value, set the time horizon, and solve for CAGR to see the required annual growth rate.
Total return measures the overall percentage gain. CAGR annualizes that growth and shows the smoothed yearly rate assuming steady compounding.