CAGR Calculator

Calculate compound annual growth rate

Calculate CAGR

Beginning Value

Ending Value

Number of Years

CAGR Result

---

Total Growth---

Absolute Return---

Reverse CAGR - Find Future Value

Starting Amount

Expected CAGR (%)

Years

---

Understanding CAGR

CAGR represents the smoothed annualized rate of return. Unlike simple average returns, CAGR accounts for the compounding effect, giving a more realistic picture of investment growth.

CAGR = (Ending Value / Beginning Value)^(1/Years) - 1

Frequently Asked Questions

What is CAGR?

CAGR (Compound Annual Growth Rate) is the mean annual growth rate of an investment over a specified period longer than one year. It smooths out the return rate as if growth were constant.

How is CAGR calculated?

CAGR = (Ending Value / Beginning Value)^(1/n) - 1, where n is the number of years.

Is CAGR the same as average return?

No. CAGR accounts for compounding while simple average does not. CAGR gives a more accurate picture of annualized growth.

Go deeper

Read the SnoopTool guide behind this tool

The calculator gives you the number. These SnoopTool guides explain the method, the assumptions and the decision — with worked examples, data tables and FAQs.

Browse all SnoopTool guides →