Free CAGR Calculator - Calculate Compound Annual Growth Rate
Advanced investor-grade CAGR calculator for stocks, private equity, venture capital, and business valuation.
Formula & Methodology
CAGR measures the smoothed annualized return of an investment over a specified time period, assuming profits are reinvested at the end of each year.
- CAGR = (Ending Value / Beginning Value)^(1/n) - 1
Worked Example
Using the CAGR Calculator: apply the formula above to your input values. For instance, CAGR = (Ending Value / Beginning Value)^(1/n) - 1. The tool performs each step instantly and shows the result.
Frequently Asked Questions
What is CAGR?
Compound Annual Growth Rate is the smoothed yearly rate that would take an investment from its start value to its end value over the period.
Why use CAGR instead of average return?
CAGR accounts for compounding and volatility, giving a more honest picture than a simple average of yearly returns.
Does CAGR reflect actual yearly performance?
No. It assumes steady growth, so real years above and below the CAGR still average to the same end result.