CAGR Calculator
Compute compound annual growth rate and solve for beginning value, final value, or time to reach a target.
Formula:CAGR = (FV/PV)^(1/n) - 1
Key Results
CAGR20.11 %
Total Return150.00 %
Final Value25,000
Time (years)5.00
$
$
yrs
%
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
1 years5 years30 years
CAGR
20.11%
Total Return
150.0%
Growth Multiple
2.50x
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.
How this works
Compound Annual Growth Rate: CAGR = (End / Start)^(1/years) − 1. Assumes the investment grew at a steady annualized rate over the period; it does not capture volatility along the way.
What this tool can’t do
When to consult a professional
This is a software engineering tool, not financial advice. Run the math here, then take the result to a certified financial planner, CPA, or your bank before making a decision that materially affects your money.
Sources
- [1]Consumer Financial Protection Bureau (CFPB)Official sourceconsumerfinance.govAccessed Apr 21, 2026
US consumer finance regulator; authoritative on mortgage disclosures, APR rules, credit cards.
Joseph OrdunaFounder & Software Engineer
Full-stack software engineer specializing in embedded systems, web architecture, and AI/ML. Founder of Practical Web Tools. Built the gesture-controlled drone IP acquired by KD Interactive (Aura Drone, sold on Amazon).
Key Results
CAGR20.11 %
Total Return150.00 %
Final Value25,000
Time (years)5.00