The CAGR calculator below, from The Finance Reveal, works out the compound annual growth rate of an investment: enter the starting value, the ending value, and the number of years, and it returns the single smoothed yearly rate that connects the two, along with your total gain and total return.

What CAGR is

Compound annual growth rate is the constant yearly rate that would take an investment from its starting value to its ending value over a given period, as if it grew smoothly every year. Real returns are rarely smooth, but CAGR strips out the ups and downs to give one comparable number, which makes it one of the most useful ways to measure and compare investment performance.

How to use the result

Use CAGR to compare investments held for different lengths of time on an equal footing, since it expresses everything as an annual rate. It pairs naturally with our ROI calculator, which shows the total percentage return, while CAGR shows the annualized one, the perspective our guide to compound growth and time builds on.

Frequently asked questions

What is the difference between CAGR and ROI?

ROI is the total percentage gain over the whole period, while CAGR expresses that gain as a smoothed annual rate. CAGR is better for comparing investments held for different lengths of time.

Does CAGR account for volatility?

No. CAGR assumes smooth growth and ignores the swings along the way, so two investments with the same CAGR can have had very different journeys. It measures the start-to-end rate, not the risk.

Can CAGR be negative?

Yes. If the ending value is lower than the starting value, the CAGR is negative, showing an average annual loss over the period.

Related calculators and guides

Pair it with the ROI calculator and the compound interest calculator, and read more in our Investing section. Every tool lives in Financial Tools.