CAGR Calculator

Find the compound annual growth rate and absolute return between a start value and an end value over time.

CAGR
—
Absolute return
—
Gain or loss
—

An estimate only; CAGR describes the past and does not predict future returns.

In short

What is the CAGR Calculator?

This CAGR calculator finds the steady yearly growth rate that would take a starting value to an ending value over a number of years. It also shows the absolute return and the gain in rupees, so you can compare investments or business figures held for different periods.

How it works

CAGR is (end value / start value)^(1 / years) minus 1, shown as a per cent. It smooths uneven yearly movements into one constant rate. Absolute return is (end value minus start value) divided by the start value. Years must be above zero and values positive.

How to use it

  1. Enter the starting value.
  2. Enter the ending value.
  3. Enter the number of years between them.
  4. Read the CAGR, absolute return and gain.
Questions

CAGR Calculator — FAQ

What does CAGR tell me?

It tells you the constant yearly rate that links two values, which helps compare growth across different time spans.

Why can CAGR be negative?

If the end value is lower than the start value, the steady rate that links them is a fall, so CAGR is negative.

Does CAGR show the risk or the path taken?

No. Real values may have swung up and down along the way, and CAGR hides that. It only links the two end points.

More Finance & Loans tools