Quick answer
CAGR (compound annual growth rate) is the constant yearly rate at which a value would grow from its starting value to its ending value over a period: CAGR = (Ending value ÷ Starting value)^(1 ÷ Years) − 1. It works the same way for stocks, Bitcoin, revenue or any other asset.
- Example
- $10,000 → $25,000 in 5 years = 20.11% a year
- Monthly equivalent
- (1 + CAGR)^(1/12) − 1 → 1.54% a month
- After 3% inflation
- (1 + CAGR) ÷ 1.03 − 1 → 16.61% real
- In Excel
=RRI(years, start, end)- Use cases
- Stocks · Bitcoin · Reverse CAGR · Excel
Last updated
What is CAGR?
CAGR (compound annual growth rate) is the constant yearly rate at which a value would have to grow to get from where it started to where it ended, assuming every year’s growth is reinvested. It turns a bumpy history into one clean figure you can compare across investments, companies and time periods of different lengths.
Say you invested $10,000 in a stock portfolio and five years later it is worth $25,000. The total return is 150%, but that tells you nothing about how fast it grew per year. The CAGR is 20.11%: growing at a steady 20.11% a year for five years turns $10,000 into exactly $25,000. That is the number this CAGR calculator gives you instantly.
The CAGR formula
CAGR = (Ending value ÷ Starting value)^(1 ÷ Years) − 1Using the example above:
- Divide the ending value by the starting value: 25,000 ÷ 10,000 = 2.5.
- Raise the result to the power of one over the number of years: 2.5^(1/5) = 1.2011.
- Subtract 1 and multiply by 100: (1.2011 − 1) × 100 = 20.11%.
The number of years does not have to be a whole number. Three years and six months is 3.5 years, and when you use the CAGR calculator with dates the exact number of days is converted into years for you. That precision matters: a fund that doubled in 4.5 years grew at 16.65% a year, not the 18.92% you would get by rounding down to four years.
How to use this online CAGR calculator
- Pick a currency so results are formatted the way you read them — dollars, euros, pounds, rupees, yen or plain numbers.
- Enter the starting value — the amount you invested, or last period’s revenue, users or price.
- Enter the ending value — what it is worth now, or at the end of the period.
- Set the time period in years and months, or switch to exact dates for a buy date and a sell date.
- Read the results. They update as you type: CAGR, total return, monthly CAGR, real CAGR after inflation, doubling time, a growth chart and a year-by-year table.
Because it runs entirely in your browser, the online CAGR calculator works offline once loaded and never stores what you type. Use “Copy link to result” to bookmark a calculation or send it to a colleague — the link reopens the same numbers.
Reverse CAGR: solve for final value, starting amount or time
Sometimes you know the growth rate and want the destination. The Reverse CAGR tab solves for whichever number is missing: the future value (Start × (1 + CAGR)^Years), the starting amount you need to reach a target, or how many years it will take. At 12% a year, $10,000 becomes $31,058 in ten years, and doubling takes 6.1 years. More examples are on the reverse CAGR calculator page.
CAGR from year-by-year data
Have a full history rather than two numbers? Paste yearly revenue, profit or prices into the Yearly data tab. Alongside the CAGR you get each year’s actual growth, the average annual growth, the best and worst years, and volatility — with a chart of the real path against the smooth CAGR line.
Monthly CAGR and exact-date CAGR
A monthly CAGR calculator answers “how much did this grow per month, compounded?” The monthly rate is (1 + CAGR)^(1/12) − 1, so the 20.11% example above works out to about 1.54% a month. That is useful for SaaS revenue, subscriber counts and savings goals tracked month by month. For periods that don’t start and end on neat anniversaries, the exact-dates mode counts every day between the two dates.
CAGR calculator for stocks, funds and the stock market
CAGR is the standard way to quote long-term returns for shares, mutual funds and indexes. To use it as a stock market CAGR calculator, enter the price you paid (or the total amount invested) and today’s value. For a fair comparison, include reinvested dividends in the ending value — price-only CAGR understates the return of dividend-paying stocks. Use the Compare tab to line up several holdings bought at different times, or read the full guide on theCAGR calculator for stocks.
The same maths works for crypto. The Bitcoin CAGR calculator is set up for exact buy and sell dates, which suits an asset that trades every day of the year and swings hard between them.
CAGR calculator in Excel
If you prefer a spreadsheet, every result shows the matching Excel formula — typically =RRI(years, start, end) — with a one-click copy button. “Download for Excel” gives you a file with your inputs, live formulas for CAGR, monthly CAGR and real CAGR, and a year-by-year growth table that recalculates when you edit it. It works in Excel, Google Sheets, LibreOffice and Numbers. For step-by-step instructions, seehow to build a CAGR calculator in Excel.
Real CAGR: did you actually beat inflation?
A 7% CAGR sounds good until you learn prices rose 5% a year over the same period. The real CAGR strips out inflation using(1 + CAGR) ÷ (1 + inflation) − 1, so a 7% nominal return with 5% inflation is only 1.9% of real growth. Enter your inflation rate in the calculator to see it next to the headline figure.
Limitations of CAGR
- It hides volatility. A value that goes 100 → 150 → 75 → 112.5 has a CAGR of 4.0%, the same as one that rose smoothly — even though the first path lost half its value in year two.
- It ignores cash flows in between. Regular deposits or withdrawals need XIRR or IRR, not CAGR.
- It looks backwards. A strong historical CAGR is not a forecast. Use reverse CAGR to test a range of assumptions rather than one hopeful number.
- The period matters. Start and end dates can make the same investment look brilliant or poor. Compare investments over the same dates whenever you can.
Our guides go deeper on each of these: CAGR vs average annual return,CAGR vs IRR and XIRR and what counts as a good CAGR.
Used with those limits in mind, CAGR is the clearest single answer to the question “how fast did this grow?” — and the quickest way to compare one investment, business or asset against another.
CAGR and your asset allocation
A portfolio’s long-run CAGR is driven mostly by its mix of stocks, bonds and cash, not by individual picks. More equities usually mean a higher CAGR and deeper drawdowns along the way. Choose a mix that fits your age, goal and risk tolerance, then rebalance periodically to keep it on track.
Frequently asked questions
What is CAGR?
CAGR, or compound annual growth rate, is the steady yearly rate at which a value would have grown from its starting point to its ending point if the growth had been reinvested every year. It smooths out ups and downs into one number, which makes it the standard way to compare investments, company revenue or any metric measured over different lengths of time.
How is CAGR calculated?
Divide the ending value by the starting value, raise the result to the power of one divided by the number of years, then subtract 1: CAGR = (End ÷ Start)^(1 ÷ Years) − 1. For example, $10,000 growing to $25,000 in 5 years gives 2.5^0.2 − 1 = 0.2011, a CAGR of 20.11%.
How to calculate CAGR on a calculator?
On a scientific or phone calculator (turn a phone sideways for the scientific keys):
- Divide the ending value by the starting value, e.g. 25,000 ÷ 10,000 = 2.5.
- Press the power key (
xʸor^) and enter (1 ÷ years), e.g. 2.5 ^ (1 ÷ 5) = 1.2011. - Subtract 1 and multiply by 100: 0.2011 × 100 = 20.11%.
If your calculator has a ʸ√x key, you can take the fifth root of 2.5 directly instead of using a fractional power.
How to calculate CAGR in a normal calculator?
A basic calculator without a power key can still do it with the square-root trick:
- Divide the ending value by the starting value (25,000 ÷ 10,000 = 2.5).
- Press
√12 times. - Subtract 1, divide by the number of years (5), then add 1.
- Square the result 12 times — on most basic calculators press
×then=, twelve times. - Subtract 1 and multiply by 100. You get about 20.11%.
The result is accurate to about two decimal places. For an exact answer, use the free CAGR calculator at the top of this page.
What all does a CAGR calculator help us understand?
A CAGR calculator shows how fast something really grew per year, so you can:
- compare investments held for different lengths of time on the same yearly scale;
- judge a company’s revenue, profit or user growth over several years;
- check whether your returns beat inflation (real CAGR) or a benchmark index;
- estimate how long money takes to double at a given rate;
- project future values with reverse CAGR when planning goals.
How do I calculate the CAGR of a company?
Pick the metric — usually revenue, net profit, earnings per share or customers — and take its value from the first and last annual reports in your period. Then apply (Latest ÷ Earliest)^(1 ÷ Years) − 1. Count the years between the reports, not the number of reports: revenue of ₹20 crore in FY2021 and ₹52 crore in FY2025 spans 4 years, so the revenue CAGR is (52 ÷ 20)^(1/4) − 1 = 26.98%.
How do you convert CAGR to annual growth?
CAGR already is an annual growth rate — the constant one that links the start and end values. To turn it into year-by-year figures, multiply the starting value by (1 + CAGR) once for each year: at 20% CAGR, $10,000 becomes $12,000, then $14,400, then $17,280 and so on. The calculator above shows this in its year-by-year growth table.
How do you transform CAGR to annual growth?
To restate a CAGR for a different period, use compounding rather than multiplication: total growth over n years is (1 + CAGR)^n − 1, and the monthly rate is (1 + CAGR)^(1/12) − 1. Keep in mind that the actual growth in any single year can be very different from the CAGR, because CAGR smooths out volatility.
Why is CAGR important?
Total returns can’t be compared when the periods differ. A 60% gain over 3 years beats an 80% gain over 6 years — CAGR shows it: 16.96% a year versus 10.29%. Because it reflects compounding, unlike a simple average, CAGR is used in fund fact sheets, company reports and valuation models.
What is a good CAGR percentage?
It depends on the asset and the risk taken. As a rough guide, the US stock market (S&P 500) has returned around 10% a year nominal over the long run, high-quality bonds around 4–5%, and savings accounts less. A CAGR above inflation means your money grew in real terms; a CAGR above a low-cost index fund means the extra risk or effort paid off. See what is a good CAGR for benchmarks by asset class.
What is a promising CAGR for a company?
For a large, established company, revenue CAGR of 8–12% sustained over five years or more is generally considered healthy. Mid-sized firms growing 15–20% and young companies above 25% are usually seen as high-growth. Consistency matters as much as the number: steady growth with rising profit is more convincing than one spike, so compare revenue CAGR with profit CAGR and with industry peers.
Can we calculate CAGR month-wise?
Yes. Enter the period as years plus months (for example 2 years 7 months) or pick exact dates, and the calculator annualises the result correctly. It also shows the monthly CAGR, (1 + CAGR)^(1/12) − 1. If your data is monthly, a monthly growth rate is simply (End ÷ Start)^(1 ÷ Months) − 1.
What is the difference between CAGR and average annual return?
The average annual return is an arithmetic mean of each year’s return, so it overstates growth when returns swing. CAGR is the geometric mean. If an investment gains 50% and then loses 50%, the average return is 0% but the CAGR is −13.4%, because you really ended with less money. More in CAGR vs average annual return.
Can CAGR be negative?
Yes. When the ending value is lower than the starting value, CAGR is negative and shows how fast the value shrank each year. If the ending value is zero, CAGR is −100%. CAGR cannot be calculated from a starting value of zero or below.
How do I calculate CAGR in Excel?
Use =(End/Start)^(1/Years)-1 or the built-in =RRI(Years, Start, End), then format the cell as a percentage. For exact dates use =(End/Start)^(365.25/(EndDate-StartDate))-1. See the CAGR in Excel guide for a free template.
Is CAGR the same as XIRR or IRR?
Only when there is a single investment at the start and a single value at the end. If you add or withdraw money along the way — for example a monthly SIP or regular deposits — use XIRR or IRR, because CAGR ignores the timing of those cash flows. See CAGR vs IRR vs XIRR for a worked SIP example.
How can I improve my portfolio’s CAGR?
Over long periods, most of a portfolio’s growth rate comes from its asset allocation — the split between stocks, bonds and cash — plus low costs and staying invested. Holding more stocks has historically raised CAGR at the price of bigger swings. Choose a mix that suits your age, goal and risk tolerance, and rebalance periodically to keep it there.
Is my data saved or shared?
No. Every calculation runs in your browser. Nothing is sent to a server and there is no sign-up. The “Copy link” button simply puts your inputs in the page address so you can bookmark or share a result.