What is the CAGR formula?

CAGR is (ending value divided by beginning value), raised to the power of one over the number of years, minus one. Written out, CAGR = (end / begin)^(1 / years) − 1. For example, going from 100 to 200 over 3 years gives (200 / 100)^(1 / 3) − 1 = 1.2599 − 1 = 0.2599, or about 26% per year. The result is the single steady annual rate that would have produced the same ending value.

How is CAGR different from total growth?

Total growth is the whole change over the period as one number, while CAGR spreads that change evenly across each year. From 100 to 200 the total growth is 100%, but the CAGR over 3 years is only about 26% a year, because each year compounds on the one before. Dividing total growth by the number of years (100% / 3 = 33%) overstates the rate, which is the most common mistake CAGR exists to fix.

Why is 100 to 200 over 3 years about 26% and not 33%?

Because growth compounds. At 26% a year, 100 becomes 126, then 158.8, then 200 — each year builds on a larger base, so a smaller yearly rate reaches the same finish. The 33% figure (100% spread over 3 years) would actually land at 100 × 1.33^3 = about 235, well past 200. CAGR is the rate that lands exactly on the ending value, which is why it is the honest annual number.

What does annualized return mean for an investment?

Annualized return is the CAGR of an investment, the constant yearly rate that turns the starting balance into the ending balance over the holding period. If 10,000 grows to 25,937 in 10 years, the annualized return is (25937 / 10000)^(1 / 10) − 1, about 10% a year. It lets you compare a 3-year and an 8-year holding on the same per-year footing, which raw total returns cannot do.

Can I work backwards from a target rate?

Yes. Switch the mode to solve for the ending value, enter a beginning value and a rate, and the tool computes begin × (1 + rate)^years. Or switch to solve for years and it returns how long the trip takes at that rate, using years = ln(end / begin) / ln(1 + rate). For instance, doubling money at 10% a year takes about 7.3 years, which matches the rule of 72 estimate of 7.2.

Does CAGR handle a loss or negative growth?

It does. If the ending value is below the beginning value, the CAGR comes back negative. Going from 500 to 350 over 4 years gives a CAGR of about −8.3% a year, meaning the value shrank by roughly that much annually. The one limit is that the beginning value must be above zero and the ending value cannot be negative, because you cannot annualize growth from a zero or negative base.

Compare two investments held for different lengths of time

One fund returned 60% over 4 years, another 90% over 7 years. Raw totals say the second won, but CAGR puts them on the same footing — about 12.5% a year versus 9.6% a year — and the first is actually the stronger annual performer. Punch each pair into the tool and you have an apples-to-apples annual rate in seconds.

Report a clean revenue growth rate to a board or investor

Revenue went from 1.2M to 4.8M over 5 years. Saying it grew 300% is technically right but misleading; the annual figure is the one people benchmark against. Enter begin, end, and years and you can put a single honest line in the deck — about 32% CAGR — that survives a sharp investor asking how you annualized it.

Set a savings or price target and back out the timeline

You want a holding to double and you assume 10% a year. Switch to the years mode, enter the begin, the doubled end, and 10%, and the tool returns about 7.3 years. Now you know whether the goal fits your horizon before committing, instead of guessing or relying only on the rule of 72.

Sanity-check a quoted annual return

A pitch claims a position turned 5,000 into 12,000 at 30% a year. Drop those numbers into the rate mode and the real CAGR is about 19% over the period it implies — far from 30%. The tool turns a marketing number into a verifiable one before you act on it.

CAGR Calculator — compound annual growth rate, reverse-solved and compared

Find the compound annual growth rate between any two values — plus reverse-solve the end value or the years, and see simple vs annualized side by side, browser-only

Runs locally
Category Calculator
Best for Getting a realistic range before a purchase, plan, workout, or schedule decision.

Quick examples

What do you want to find

Beginning value

Ending value

Number of years

CAGR

25.99%

Simple vs annualized

Total growth

100.00%

Annualized (CAGR)

25.99% per year

Total growth is the whole change over the period. CAGR is the steady yearly rate that would produce the same end value.

What this tool does

A precise compound annual growth rate (CAGR) calculator for investing, revenue, and any figure that grows over time. Enter a beginning value, an ending value, and a number of years, and it returns the steady yearly rate that would carry the first number to the second using the standard formula CAGR = (end / begin)^(1 / years) − 1. It does more than the single number. It reverse-solves two ways: give it a rate and it computes the ending value after N years, or give it a target value and rate and it tells you how many years the trip takes. It also places simple total growth next to the annualized rate so you can see why a 100% total gain over three years is only about 26% a year, not 33%. Negative growth is handled honestly: if the ending value is lower, the CAGR comes back negative rather than breaking. Every input is encoded in a shareable URL, results copy with one click, and all the arithmetic runs locally in your browser with no upload and no external call.

Tool details

Input: Numbers; The page exposes text boxes, numeric controls, file pickers, or structured inputs depending on the tool.
Output: Live result + Copy; The result area focuses on usable output, with copy, download, or preview actions when supported.
Privacy: Browser-side processing; The main tool logic does not call an external API, so inputs normally stay in the current tab.
Save / share: Shareable URL state; Key settings are encoded in the URL so another person can reopen the same setup.
Performance budget: Initial JS <= 9 KB; No WASM budget is declared, keeping the tool quick to open on mobile.
Best fit: Calculator · Finance; Category and role tags drive related tools, internal links, and quick fit checks.

How to use

1. Input

Paste or drop your content into the tool panel.
2. Process

Click the button. All processing is local in your browser.
3. Copy / Download

Copy the result or download to disk in one click.

How CAGR Calculator fits into your work

Use it for fast estimates, comparisons, and planning numbers before you make the final call.

Calculation jobs

Getting a realistic range before a purchase, plan, workout, or schedule decision.
Comparing scenarios by changing one input at a time.
Turning rough assumptions into a number you can discuss.

Calculation checks

Double-check units, dates, rates, and rounding assumptions.
Treat health, finance, tax, and legal outputs as planning aids, not professional advice.
Save the inputs that produced an important result so you can reproduce it later.

Good next steps

These links move the current task into a more complete workflow.

Real-world use cases

Compare two investments held for different lengths of time
One fund returned 60% over 4 years, another 90% over 7 years. Raw totals say the second won, but CAGR puts them on the same footing — about 12.5% a year versus 9.6% a year — and the first is actually the stronger annual performer. Punch each pair into the tool and you have an apples-to-apples annual rate in seconds.
Report a clean revenue growth rate to a board or investor
Revenue went from 1.2M to 4.8M over 5 years. Saying it grew 300% is technically right but misleading; the annual figure is the one people benchmark against. Enter begin, end, and years and you can put a single honest line in the deck — about 32% CAGR — that survives a sharp investor asking how you annualized it.
Set a savings or price target and back out the timeline
You want a holding to double and you assume 10% a year. Switch to the years mode, enter the begin, the doubled end, and 10%, and the tool returns about 7.3 years. Now you know whether the goal fits your horizon before committing, instead of guessing or relying only on the rule of 72.
Sanity-check a quoted annual return
A pitch claims a position turned 5,000 into 12,000 at 30% a year. Drop those numbers into the rate mode and the real CAGR is about 19% over the period it implies — far from 30%. The tool turns a marketing number into a verifiable one before you act on it.

Common pitfalls

Dividing total growth by the number of years instead of using CAGR. A 100% total gain over 3 years is not 33% a year, it is about 26%, because each year compounds on the last. The simple average always overstates the true annual rate.
Counting the years wrong by one. CAGR uses the number of full periods between the two values, not the count of data points. A figure from end-of-2020 to end-of-2023 spans 3 years, not 4. An off-by-one here can swing the rate by several percent.
Trying to annualize from a zero or negative starting value. CAGR needs a positive beginning value because it divides by it and takes a root; a start of 0 or a loss to a negative number has no meaningful annual rate, so the tool returns nothing rather than a fake figure.

Privacy

Every calculation — the CAGR formula, the reverse solves for end value and years, and the simple-versus-annualized comparison — is plain JavaScript that runs in your browser tab. No figure you type is logged or sent anywhere. The one caveat: the shareable URL encodes your begin, end, years, and rate in the query string, so a link pasted into chat will record those numbers in the recipient server's access log. For a confidential return, use the copy button and paste the text instead of sharing the URL.

FAQ

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CAGR Calculator — compound annual growth rate, reverse-solved and compared

What this tool does

Tool details

How to use

1. Input

2. Process

3. Copy / Download

How CAGR Calculator fits into your work

Calculation jobs

Calculation checks

Good next steps

Real-world use cases

Compare two investments held for different lengths of time

Report a clean revenue growth rate to a board or investor

Set a savings or price target and back out the timeline

Sanity-check a quoted annual return

Common pitfalls

Privacy

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