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How to calculate CAGR (compound annual growth rate)

Turn a beginning value, ending value, and time period into a smoothed annual growth percentage.

Total return alone does not account for time. CAGR normalizes growth to an annual rate so you can compare a 3-year investment against a 10-year one. The CAGR Calculator applies the standard formula instantly.

Try it — enter beginning value, ending value, and years

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How it works

  1. Beginning value — starting balance or price.
  2. Ending value — current or exit value.
  3. Years — holding period (decimals OK for partial years).

The formula

CAGR = (Ending ÷ Beginning)1/years − 1, expressed as a percentage. Example: $10,000 → $25,000 over 5 years = ~20.1% CAGR.

CAGR vs total return

Total return shows the full gain. CAGR shows the equivalent steady annual rate that would produce the same result. Use CAGR when comparing investments over different time horizons.

The How to calculate CAGR (compound annual growth rate) is free, runs locally, and never sends your data to a server. More finance calculators at maratool.com.