How is CAGR calculated?

CAGR is the ending value divided by the beginning value, raised to the power of one over the number of years, minus one — expressed as a percentage per year.

How is CAGR different from average return?

CAGR is the smoothed, compounded rate that takes you from the start value to the end value, whereas a simple average ignores compounding and can overstate growth.

Can CAGR be negative?

Yes. If the ending value is lower than the beginning value, the CAGR is negative — it represents an average annual loss rather than a gain.

Why do I need positive values and years?

The formula raises a ratio to a fractional power, which is only defined for positive beginning and ending values and a non-zero number of years. With zero or negative inputs the calculator asks you to correct them.

Does CAGR account for deposits or withdrawals?

No. CAGR assumes a single beginning value grows to a single ending value with no cash added or removed in between. For investments with ongoing contributions, an internal rate of return (IRR) or money-weighted return is more appropriate.

How do I turn CAGR back into total growth?

Total growth equals (1 + CAGR)^years − 1. For example 12.47% over 5 years gives (1.1247)^5 − 1 ≈ 80%, matching an investment that grew from 10,000 to 18,000.

Is my data uploaded anywhere?

No — every calculation happens entirely in your browser and nothing you enter is sent to a server.

CAGR Calculator — Gera Tools

CAGR calculator

CAGR — compound annual growth rate — is the single yearly rate that would take an investment from its starting value to its ending value if it grew steadily each year. This calculator finds that rate from a beginning value, an ending value and the number of years, and also shows the total growth over the period. It is the standard way to compare the performance of funds, stocks or business metrics over different time spans.

How it works

The calculator applies the CAGR formula:

CAGR = (ending ÷ beginning)^(1 ÷ years) − 1

expressed as a percentage. The total growth is the simple ratio (ending ÷ beginning − 1) × 100. CAGR is lower than a simple average of yearly returns whenever returns are volatile, because it reflects compounding and the order of gains and losses.

Example

An investment grows from 10,000 to 18,000 over 5 years:

CAGR = (18,000 ÷ 10,000)^(1 ÷ 5) − 1 = 1.8^0.2 − 1 ≈ 0.1247
CAGR ≈ +12.47% per year
Total growth = +80%

Beginning	Ending	Years	CAGR
10,000	20,000	10	7.18%
10,000	18,000	5	12.47%
5,000	4,000	3	−7.17%

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