Compound Annual Growth Rate Calculator
The compound annual growth rate (CAGR) describes the smoothed annual rate at which an investment grows between a starting value and an ending value over a fixed number of years. It removes the volatility of year-to-year returns so you can compare outcomes across strategies and asset classes. Use this calculator to quantify the equivalent steady growth rate implied by your actual results.
Realistic example: an early-stage index investment rising from 12,000 to 24,000 over 5 years reflects the performance growth we want to capture with CAGR. Inputting those figures reveals the constant annual rate that would compound to the exact tripling of capital, rather than relying on individual year swings.
Use the CAGR value to benchmark funds, compare private equity deals, or assess whether a reinvestment strategy can meet your long-term planning target. Remember that CAGR abstracts volatility away, so pair it with volatility metrics if you need to understand risk.
Adjust the starting and ending values whenever you receive new account statements to see how each update shifts the implied annualized growth, and use it alongside dividend or cash distribution data to get a full picture of your capital trajectory.