Saving & investing
CAGR Calculator
Find the compound annual growth rate between two values, the end value a rate produces, or the years a rate takes to reach a target, with a year-by-year path.
Compound annual growth rate
7.18%
$10,000.00 to $20,000.00 over 10 years
Growth multiple
2.00x
$20,000.00 ÷ $10,000.00
Total change
100%
$10,000.00 in all
Simple average a year
10%
Total change ÷ years: not a growth rate
How 7.18% a year was worked out
$20,000.00 ÷ $10,000.00 is a multiple of 2. The yearly rate that compounds to that over 10 years is 2^(1 ÷ 10) − 1 = 7.18%. Dividing the 100% total change by the years instead gives 10%, which ignores that each year grows on the last.
A smoothed rate, not a forecast. An estimate, not financial advice, providers may calculate differently.
- Value
Year by year at 7.18%
| Year | Growth that year | Value |
|---|---|---|
| 1 | $717.73 | $10,717.73 |
| 2 | $769.25 | $11,486.98 |
| 3 | $824.46 | $12,311.44 |
| 4 | $883.63 | $13,195.08 |
| 5 | $947.06 | $14,142.14 |
| 6 | $1,015.03 | $15,157.17 |
| 7 | $1,087.88 | $16,245.05 |
| 8 | $1,165.96 | $17,411.01 |
| 9 | $1,249.65 | $18,660.66 |
| 10 | $1,339.34 | $20,000.00 |
A real investment rarely moves like this: the path is the steady rate that joins the same two points, which is all a CAGR describes.
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How this is calculated
Give the calculator a starting value, an ending value and the years between them, and it finds the single yearly rate that, compounded, joins the two: the compound annual growth rate. Switch the mode and the same relationship runs the other way, giving the value a steady rate reaches after a number of years, or the number of years a rate needs to reach a target you set. The year-by-year table and chart show the smoothed path that rate implies, which is a summary of where the value went rather than a record of how it got there.
CAGR(E ÷ S)1 ÷ t − 1
- S
- Starting value
- E
- Ending value, or Target value
- t
- Years
What this does not include
- Money added or withdrawn between the two dates; CAGR assumes a single start and end.
- The ups and downs along the way, which the smoothed rate leaves out.
- Tax, fees and inflation, unless the values you enter already allow for them.
How this calculator works
CAGR explained: the formula, its reverse, and what it hides. How the compound annual growth rate is calculated, how to turn it round to find an end value or a time, why it beats a simple average, and where it misleads.
This calculator is for general information only and is not financial advice. Results are estimates based on the figures you enter and the stated formula; lenders and providers may round or calculate differently. Check any decision with the institution involved or a qualified adviser.