FinanceDefault example result: 10.4%

CAGR Calculator

Turn uneven total growth into a single annualized rate so different investments or projects are easier to compare.

Published: March 31, 2026
Last updated: March 29, 2026

Calculator

CAGR Calculator

Enter the initial investment or beginning value.

$

Enter the current or final value after growth.

$

Use the full time period between the starting and ending values.

years

Example values are loaded.

Result

Your result

Growing from $25,000.00 to $41,000.00 over 5 years works out to about 10.4% per year.

CAGR

10.4%

Total growth

64%

Ending value

$41,000.00

Growth inputs

Starting value$25,000.00
Ending value$41,000.00
Growth multiple1.64x

Next steps

Compare before you move on

Most people use one calculator to answer the first question and a related tool to pressure-test the decision.

What this calculator shows

Compound annual growth rate smooths total growth into a single annualized figure, which makes it easier to compare investments with different holding periods.

It is most helpful when the start and end values are known but the path between them was uneven.

How to use it

  1. 1. Enter the starting value and ending value.
  2. 2. Add the number of years between those two values.
  3. 3. Use the resulting CAGR to compare performance against another investment or benchmark.

Formula and assumptions

CAGR = (ending value / starting value)^(1 / years) - 1.

The result expresses the constant annual rate that would produce the same total growth over the full period.

Notes

CAGR smooths volatility. It does not show the path or risk taken to reach the ending value.

Worked example

A portfolio growing from $25,000 to $41,000 over five years gives a clean annualized return for comparison.

This example uses the default sample inputs loaded on reset. It does not update with the live calculator entries above.

CAGR

10.4%

Total growth

64%

Ending value

$41,000.00

Feedback

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FAQ

FAQ

Is CAGR the same as average yearly return?

Not exactly. CAGR is a geometric annualized rate, while a simple average of yearly returns can overstate growth when returns fluctuate.

FAQ

Can I use CAGR for revenue or business growth?

Yes. CAGR is useful for revenue, traffic, subscriber growth, and other figures that change over multiple years.