CAGR Calculator

Formula and methodology

CAGR (%) = ((ending / beginning)^(1 / years) − 1) × 100

Beginning value is positive; ending value is nonnegative. Use consistently measured values in one currency. Years = months / 12 when months is selected. The duration counts elapsed intervals, not the number of observations. No actual-date or leap-year convention is inferred.

Total change (%) = (ending / beginning − 1) × 100. Change in value = ending − beginning. These outputs describe the whole period, whereas CAGR is a constant annual equivalent.

Verified worked example

A hypothetical 10,000 becomes 16,105.10 over five years with no interim cash flows. The ratio is 1.61051; its fifth root is 1.1. CAGR is (1.1 − 1) × 100 = 10%, while total change is 61.051% and change in value is 6,105.10. Check: 10,000 × 1.1^5 = 16,105.10.

For a decline from 10,000 to 8,000 in two years, CAGR is approximately −10.5572809%. For 100 to 110 over six months, the annual equivalent is 21%, although the observed change is 10%. This short-period annualization is not a forecast.

Inputs and interpretation

1. Choose a market for formatting: USA/USD, UK/GBP, Canada/CAD, Australia/AUD or India/INR. No FX conversion occurs.
2. Enter ungrouped beginning and ending amounts with a decimal point, then elapsed duration and years or months.
3. Check the cash-flow assumption. Interim deposits or withdrawals require a different return method; this tool will withhold the result.
4. Compare the annualized rate with total change. A smooth equivalent does not reveal the intervening volatility or drawdowns.
5. Read warnings and choose display precision. Clear values removes the in-memory scenario.

Assumptions, limits and common mistakes

Supported beginning value: 0.000000000001 to 10^30. Ending value: zero or that positive range. Duration: 0.01–1,000 years or 0.12–12,000 months. Inputs allow at most 12 decimal places. Negative endpoint values, a zero beginning value, ambiguous grouped inputs and unsupported output ranges return clear errors.

Calculations use 50 significant decimal digits and half-even rounding. Near-total declines that cannot be distinguished reliably from −100% are rejected. Display rounding never turns a tiny nonzero result into zero or a near-total decline into a false complete loss.

Avoid counting observations instead of intervals, mixing currencies, dividing total return by years, or interpreting deposits as investment gains. No automatic tax, fee, inflation, distribution reinvestment or currency adjustment is included. A price-only measure may omit distributions. No current country tax rules or live rates are assumed.

Frequently asked questions