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Calculator · Reviewed 2026-10-24

CAGR calculator

CAGR = (end value / start value)^(1 / years) - 1. It is the constant yearly rate that turns the start value into the end value. Example: 10,000 growing to 20,000 in 5 years is a CAGR of 14.87 % (a total return of 100 %). CAGR smooths the path: two series with the same CAGR can have very different drawdowns.

Calculated in your browser. Nothing you type is sent to IMRYN. Source code and tests (MIT).

Educational calculator, not financial advice. It does not know your situation, costs, taxes or the real distribution of your returns. Past or estimated figures do not predict future results.

Worked example

Start 10,000, end 20,000, 5 years: CAGR 14.87 %, total return 100 %, multiple 2x.

Formula

  • CAGR = (V_end / V_start)^(1 / n) - 1, with n the number of years (fractional years allowed).
  • From two dates: n = number of days / 365.25.
  • Total return = V_end / V_start - 1. Projection: V = V_start x (1 + CAGR)^n.

Limits

  • Deposits and withdrawals during the period distort CAGR. Use a money-weighted or time-weighted return in that case.
  • CAGR says nothing about volatility or drawdowns along the way.
  • A past CAGR is not a forecast.

Questions

Is CAGR the same as average annual return?

No. The arithmetic average of yearly returns is higher than CAGR whenever returns vary. CAGR is the geometric rate actually compounded.

Can CAGR be negative?

Yes, when the end value is below the start value.

What if the period is less than a year?

The formula still works with a fractional n, but annualising a short period can exaggerate the rate.

Editorial responsibility

Victor Laybats

Victor Laybats reviewed the formulas, worked examples and claim boundaries for this page. The formulas are covered by automated tests.

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