Worked example
Here is a simple CAGR example:
(15,000 ÷ 10,000)^(1 ÷ 4) − 1 → 10.67% CAGR.CAGR Calculator
Calculate the annualized growth rate between a starting and ending value.
Starting value10,000
Ending value15,000
Term (years)5
Does not account for risk, inflation, or timing of cash flows.
Practical guide
CAGR Calculator
Common mistakes to avoid
- CAGR hides year-to-year volatility.
- Use positive starting and ending values.
- Compare investments over equal periods.
Frequently asked questions
What does the CAGR calculate?
Calculate the annualized growth rate between a starting and ending value.
Which formula is used?
CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1
Can I rely on this result?
Use the result as a planning estimate. Check important financial, tax, legal, investment, or health decisions with a qualified professional.