CAGR Finder: Compound Annual Growth Rate Calculator
Calculate the compound annual growth rate, cumulative multiplier, and total return between two values over a stated period.
Earlier editorial review
- Reviewed
- 2026-09-18
- Methodology
- 1.1
Sources
How it works
Enter the starting value, ending value, and elapsed period in years. The starting value must be positive, the ending value may be zero or higher, and the period must be positive. Fractional years are allowed. All values should use the same measurement basis.
The calculator reports three related measures. CAGR is the constant annual compound rate that connects the endpoints. The multiplier is ending value divided by starting value. Total return is the percentage change across the full period, without annualizing it.
For example, a change from 10,000 to 15,000 over 5 years gives a 1.50 multiplier, 50% total return, and 8.45% displayed CAGR. A change from 100 to 81 over 2 years gives a 0.81 multiplier, −19% total return, and −10% CAGR.
Use values measured on a consistent basis and include the full elapsed period. If contributions, withdrawals, or distributions are treated differently between the two values, the calculated rate may not answer the comparison you intend.
Step by step
- Enter the positive starting value and the nonnegative ending value.
- Enter elapsed time in years. A positive decimal can represent a partial year.
- Review CAGR beside the cumulative multiplier and full period return.
Worked examples
Enter a starting value of 10,000, an ending value of 15,000, and 5 years. The multiplier is 1.50, total return is 50%, and CAGR is 8.45% when rounded to two decimal places. The unrounded annual rate is about 8.447177%.
For a decline from 100 to 81 over 2 years, CAGR is −10.00%, the multiplier is 0.81, and total return is −19.00%. These rates connect the endpoints and do not describe the path between them.
When to use this calculator
Use CAGR to summarize the compound rate between two values measured on the same basis over a known period. The inputs can be historical values or an explicitly assumed scenario.
Use a cash flow return method when deposits or withdrawals occurred during the period. Use a total return measure when distributions need to be included.
Common interpretation mistakes
Use the same units and measurement basis for both values. Do not mix a price only starting value with an ending value that includes distributions, or compare different elapsed periods without accounting for the dates.
Do not read CAGR as the return earned in every year. The rate smooths the endpoints into one compound rate and hides changes along the way.
Formula and units
multiplier = endingValue ÷ startingValue
CAGR = multiplier ^ (1 ÷ years) − 1
totalReturnPct = (multiplier − 1) × 100
CAGR is returned as a decimal rate and formatted as a percentage in the result. The multiplier and total return describe the full change between the two values. A zero ending value is treated as a full loss. The model does not include cash flows during the period.
Assumptions and limitations
CAGR is the constant annual compound rate between two values. It does not represent the actual sequence of returns or include deposits, withdrawals, fees, taxes, inflation, or changes in holdings. A zero ending value is modeled as a full loss with a −100% CAGR. Inputs whose results exceed the supported finite numeric range are unavailable. CAGR is not a forecast or a measure of risk.
Key terms
- Compound annual growth rate
- The constant annual compound rate that connects a starting value and ending value over an elapsed period.
- Cumulative multiplier
- Ending value divided by starting value, showing how many times the value changed over the full period.
- Total return
- The percentage change from starting value to ending value, without annualizing the change.
Compare related tools
CAGR Finder connects two values over a stated period. Total Return Calculator can include dividends, while Money Weighted Return accounts for the timing of deposits and withdrawals. Those tools answer different questions.
Compare values measured on the same basis and over the same dates. A price return and a total return are not interchangeable inputs.
FAQ
What does CAGR measure?
CAGR is the constant annual compound rate that connects a starting value to an ending value over the entered period. It is a summary of the two endpoints. It does not mean the value changed by the same amount in each year.
How is the annual rate calculated?
Divide the ending value by the starting value to get the multiplier. Raise it to the power of one divided by elapsed years, then subtract one. The result is a decimal rate, displayed here as a percentage. Fractional years are accepted.
Can CAGR show a loss or a zero ending value?
A decline produces a negative CAGR. If the ending value is zero, the model reports a full loss: CAGR is −100%, the multiplier is zero, and total return is −100%. A starting value must be greater than zero.
Does CAGR include deposits or withdrawals?
No. This calculation uses only a starting value, ending value, and elapsed time. Deposits and withdrawals during the period can change a return calculation. Use a cash flow return method when the timing and size of those flows matter.
Is CAGR a forecast of future returns?
No. CAGR gives the constant rate that links the two entered values. It does not predict future performance, estimate risk, or show the sequence of gains and losses between the endpoints.
Related tools
Total Return Calculator can include distributions in a price return. Money Weighted Return accounts for dated deposits and withdrawals. Use a method that matches the values and cash flows being compared.