A CAGR calculator shows the annualized growth rate needed to turn a starting value into an ending value over time. Use it to compare investment growth, revenue growth, or loan payoff progress on a consistent annual basis.
CAGR
12.47%
Total gain
$8,000.00
Growth multiple
1.80x
Calculator inputs
Results
Over 5 years, that is a $8,000.00 total change and a 1.80x growth multiple.
CAGR
12.47%
Total gain
$8,000.00
Growth multiple
1.80x
Annualized dollar gain
$1,600.00
Projection
| Year | Projected value | Cumulative growth |
|---|---|---|
| 1 | $11,247.46 | $1,247.46 |
| 2 | $12,650.54 | $2,650.54 |
| 3 | $14,228.64 | $4,228.64 |
| 4 | $16,003.61 | $6,003.61 |
| 5 | $18,000.00 | $8,000.00 |
CAGR = (ending value / starting value)^(1 / years) - 1. It smooths growth into one annual rate, which makes very different investments, revenue periods, or balance changes easier to compare.
Optional yearly contributions are projected at the same CAGR so you can model what steady added principal might become if the same annualized growth rate continues.
Future value with contributions
$24,413.03
Adjusted total gain
$14,413.03
FAQ
A CAGR calculator finds the constant annual growth rate that would turn a starting value into an ending value over a chosen number of years.
CAGR equals ending value divided by starting value, raised to one divided by years, minus one. The result is usually shown as a percentage.
No. CAGR is a smoothed annualized rate that includes compounding. A simple average annual return can overstate performance when results are volatile.
Yes. If the ending value is lower than the starting value, CAGR is negative because the value declined on an annualized basis.