CAGR Calculator
By Talcart · Last updated July 10, 2026
CAGR (Compound Annual Growth Rate) Guide
Understanding CAGR
Basic Formula
- CAGR = (Final Value / Initial Value)^(1/n) - 1
- Where: n = Number of years
- Example: $10,000 to $16,105 in 5 years = 10% CAGR
Usage
- Smooths out returns over time
- Useful for comparing investments
- Ignores interim volatility
CAGR Calculator
This CAGR calculator finds the compound annual growth rate that links a starting value to an ending value over any number of years: growing $10,000 into $25,000 over 10 years is a 9.60% CAGR. It is the standard way to state multi-year investment returns, fund performance, and revenue growth as a single smoothed annual figure.
Key facts
- Doubling your money requires a 14.87% CAGR over 5 years, 7.18% over 10 years, and just 3.53% over 20 years.
- Growing $10,000 to $25,000 in 10 years is a 9.60% CAGR: (2.5)^(1/10) - 1.
- The Rule of 72 approximates doubling time as 72 / rate: at 9% it predicts 8 years versus the exact 8.04 years.
What is the CAGR Calculator?
Compound annual growth rate (CAGR) is the constant year-over-year growth rate that would carry an investment from its beginning value to its ending value over a given period, assuming profits compound annually. It deliberately smooths out volatility: an investment that gained 40% one year and lost 10% the next has the same CAGR as one that grew steadily. Because it is a geometric rather than arithmetic average, CAGR is always less than or equal to the simple average of yearly returns and gives a truer picture of realized compound growth.
How does the CAGR Calculator work?
The calculator computes CAGR = (ending value / starting value)^(1/n) - 1, where n is the number of years. Dividing the two values gives the total growth multiple; taking the n-th root spreads that multiple evenly across the years on a compound basis; subtracting 1 converts the multiplier into a rate. For example, $16,105 / $10,000 = 1.6105 over 5 years, and 1.6105^(1/5) = 1.10, giving exactly 10% CAGR. Fractional years work too -- use n = months / 12 for periods that are not whole years.
What is the CAGR Calculator formula?
- V_start – starting value
- V_end – ending value
- n – number of years
CAGR Required to Double or Triple Your Money
| Time Horizon | CAGR to Double (2x) | CAGR to Triple (3x) |
|---|---|---|
| 3 years | 25.99% | 44.22% |
| 5 years | 14.87% | 24.57% |
| 7 years | 10.41% | 16.99% |
| 10 years | 7.18% | 11.61% |
| 15 years | 4.73% | 7.60% |
| 20 years | 3.53% | 5.65% |
| 25 years | 2.81% | 4.49% |
| 30 years | 2.34% | 3.73% |
How do you use the CAGR Calculator?
- Enter starting and ending values.
- Enter the number of years.
- Read your CAGR %.
Worked example
| Scenario | $10,000 → $16,105 over 5 years |
| Calculation | (16105 / 10000)^(1/5) − 1 = 0.10 |
| Result | CAGR = 10%. |
Common use cases
Tips & best practices
CAGR hides volatility — combine with standard deviation for risk-adjusted comparisons.
Frequently asked questions
A 7.18% CAGR doubles your money in exactly 10 years, since 1.0718^10 is approximately 2. The Rule of 72 gives a quick estimate of the same relationship: 72 / 7.2 is about 10 years. To double in 5 years you need 14.87%, and in 20 years only 3.53%. Tripling in 10 years requires 11.61%.
No. The simple average of yearly returns ignores compounding and overstates performance whenever returns fluctuate. An investment that rises 50% then falls 50% has a +0% average return but is actually down 25%, a CAGR of about -13.4% over two years. CAGR is the geometric mean, which reflects what your money actually did.
Yes -- whenever the ending value is below the starting value, the n-th root of a fraction below 1 is below 1, making CAGR negative. A fall from $10,000 to $8,000 over 5 years is a CAGR of about -4.36% per year. CAGR is undefined only if the starting value is zero or the values have opposite signs.
CAGR uses only two data points, so it hides everything between them: volatility, drawdowns, and the timing of gains. Two funds with identical 8% CAGRs can carry very different risk. It also ignores cash added or withdrawn mid-period -- deposits inflate apparent growth. For portfolios with contributions or irregular cash flows, IRR (money-weighted return) is the correct measure instead.
CAGR handles exactly two cash flows -- a start value and an end value -- while IRR solves the compound rate for any pattern of deposits and withdrawals over time. If you invest once and never touch it, CAGR and IRR are identical. Add monthly contributions and only IRR remains accurate, because each contribution compounds for a different length of time.
Use the fractional year count as n in the formula. For 30 months, n = 2.5, so growth from $10,000 to $13,000 gives CAGR = 1.3^(1/2.5) - 1, which is about 11.06% per year. This annualizes any holding period correctly, though annualizing very short periods (under a year) can wildly exaggerate a temporary gain.