How do I calculate CAGR?
Use the CAGR Calculator below — enter your values (or two dates) and click Calculate.
| Year | Value at Constant CAGR | Yearly Growth $ |
|---|
How to Calculate CAGR (Compound Annual Growth Rate) in 2026
The compound annual growth rate (CAGR) tells you the constant annual rate that would grow a starting value into an ending value over a set period, assuming growth compounds every year. Unlike a raw percentage gain, CAGR annualizes the result so you can compare a 3-year stock return against a 10-year revenue trend on equal footing. Enter any two values in the calculator above to get your answer instantly — or keep reading for the exact formula, a worked example, and how to do the same calculation in Excel.
The CAGR Formula
CAGR = (Ending Value ÷ Beginning Value)1/n − 1
Where EV = ending value, SV = starting value, and t = number of years (time period). Multiply the decimal result by 100 to convert it to a percentage. The related formulas for reverse-solving are: EV = SV × (1 + CAGR)t and t = ln(EV/SV) ÷ ln(1 + CAGR).
CAGR Calculation Example
Suppose you invested $1,000 and it grew to $1,300 over 3 years. Step 1: divide 1300 by 1000 = 1.3. Step 2: raise 1.3 to the power of 1/3 (0.3333) = 1.0914. Step 3: subtract 1 = 0.0914, or a 9.14% CAGR. Your simple total growth was 30% (30% ÷ 3 years would suggest 10%/year), but compounding means the true annualized rate is slightly lower. This is exactly why analysts use CAGR instead of dividing total return by the number of years.
Solve for Ending Value, Starting Value, or Number of Years
This calculator is a four-in-one tool. Most visitors come for the growth rate itself, but the same CAGR formula rearranges to answer the other three questions too: what an investment will be worth, what it must have started with, or how long it will take to reach a goal. Each capability lives behind its own tab at the top of the calculator.
Find the Ending Value with CAGR
To find the ending value, multiply the starting value by 1 plus the CAGR raised to the number of years: EV = SV × (1 + CAGR)t. For example, $5,000 growing at an 8% CAGR for 6 years ends at $7,934.37. Click Find Ending Value in the calculator, enter the starting value, rate, and years, and it returns the result plus the total gain instantly.
Find the Starting Value — Reverse CAGR Calculator
A reverse CAGR calculation divides the ending value by 1 plus the CAGR raised to the years: SV = EV ÷ (1 + CAGR)t. This answers questions like “I need $50,000 in 10 years at 7% — how much do I start with?” (about $25,418). Use the Find Starting Value mode and the tool back-solves the required starting amount.
Find the Number of Years to Reach a Goal
For time, take the log of the value ratio divided by the log of the growth factor: t = ln(EV / SV) ÷ ln(1 + CAGR). Doubling money at a 10% CAGR takes about 7.27 years; at 20%, only about 3.8 years. Switch to the Find Number of Years mode, or enter a start and end date instead of a year count and the calculator computes the exact fractional years from the dates.
CAGR vs Simple Growth Rate — What's the Difference?
The simple growth rate ignores compounding and time: (Ending − Beginning) ÷ Beginning × 100. CAGR annualizes with compounding, which makes it the right tool for comparing investments or business metrics of different lengths. A company growing revenue from $1M to $1.61M in 5 years has a 10% CAGR (1.611/5 − 1 ≈ 10%) — even though total growth was 61%. For portfolios with ongoing contributions or withdrawals, neither metric fits perfectly; use an compound interest calculator for contribution scenarios or XIRR for irregular cash flows.
How to Calculate CAGR in Excel
If your starting value is in cell B1, ending value in C1, and years in A1, enter this formula and format the cell as a percentage:
Excel also has a built-in shortcut: =RRI(nper, pv, fv) where nper = number of periods, pv = starting value entered as a negative number, and fv = ending value. For example: =RRI(3, -1000, 1300) returns 9.14%. To find the ending value instead, use =FV(rate, nper, 0, -pv). These cover the most-searched "calculate CAGR in Excel" workflows without any add-ins.
Historical CAGR Benchmarks (2026 Reference Table)
Use these long-run annualized rates as a sanity check when interpreting your own CAGR:
| Asset / Metric | Typical Long-Run CAGR | Notes |
|---|---|---|
| S&P 500 (nominal, pre-2026) | ~10% per year | Commonly cited long-term average including dividends |
| S&P 500 (after inflation) | ~6–7% real | Approximate real return after ~3% inflation |
| US inflation (CPI, long run) | ~3% per year | Compare via our CPI inflation calculator |
| High-yield savings / T-bills | ~2–5% | Rate-cycle dependent |
| Individual growth stocks | Highly variable | Same CAGR can hide very different volatility |
| Company revenue growth | Context-dependent | Compare against industry peers over 3-year and 5-year windows |
Sources: SlickCharts historical S&P 500 returns; US Bureau of Labor Statistics CPI long-term averages. Figures are rounded estimates for educational purposes, not investment advice.
CAGR Limitations You Should Know
CAGR is a smoothed average — it assumes the value grew at the same rate every year, which almost never happens in real markets. It ignores volatility, maximum drawdowns, risk, and any money you added or withdrew mid-period. Two funds can show the same 12% CAGR while one experienced a 40% crash along the way. Always pair CAGR with a volatility or risk measure, and when your portfolio includes regular contributions, model the full schedule with our compound interest calculator instead of relying on CAGR alone. For retirement projections that combine savings rate and market returns, see our retirement calculator.
FAQ
CAGR stands for compound annual growth rate. It is the constant annual growth rate that would take a starting value to an ending value over a given number of years if growth compounded evenly each year. CAGR smooths out volatility, making it easy to compare investments, stocks, or business metrics across different time horizons.
The formula is CAGR = (Ending Value / Beginning Value)^(1 / Years) − 1. Multiply by 100 to get a percentage. A $1,000 investment ending at $1,300 after 3 years gives (1300/1000)^(1/3) − 1 = 9.14%.
1) Divide the ending value by the starting value. 2) Raise that result to the power of 1 ÷ number of years. 3) Subtract 1. 4) Multiply by 100 for a percentage. Our calculator does all four steps instantly — you can also enter two dates instead of a year count and it computes the exact fractional years for you.
With years in A1, start value in B1, and end value in C1, use =(C1/B1)^(1/A1)-1 and format as a percentage. Alternatively use =RRI(years, -start, end). Both give the same result as this calculator.
Yes. The S&P 500's long-run average is roughly 10% per year, so sustaining 15% CAGR beats the historical market benchmark. A 15% CAGR doubles money in about 5 years (Rule of 72: 72 ÷ 15 ≈ 4.8 years). Remember CAGR hides volatility — a smooth 10% can be safer than a wild 15%.
Using CAGR = 2^(1/n) − 1: doubling in 3 years needs ~26% CAGR, 5 years needs ~14.9%, and 10 years needs ~7.2%. The quick Rule of 72 shortcut (72 ÷ rate = years to double) gives close estimates for typical rates.
Absolute (simple) return is just (End − Start) ÷ Start × 100 with no time adjustment. CAGR annualizes that growth with compounding. $1,000 to $1,500 in 5 years is a 50% absolute return but only a 8.45% CAGR — the number you need when comparing to annual benchmarks like inflation or market averages.
Yes. If your ending value is below your starting value, CAGR is negative — for example, $10,000 falling to $8,000 over 2 years is a CAGR of about −10.6% per year. Negative CAGR is common for individual stocks, sectors, or companies in decline.
It is the annualized compound growth measured over a 3-year or 5-year window. Analysts report 3-year and 5-year CAGRs for stocks and revenue to compare medium-term trends without distortion from a single unusual year. Longer windows (10-year) smooth more but can hide recent changes in direction.
Use XIRR (or time-weighted return) when money moved in or out during the period — monthly contributions, withdrawals, or irregular cash flows. CAGR only looks at the first and last values, so it misstates performance for actively managed contribution schedules. For steady monthly investing, model growth with our compound interest calculator.
Use EV = SV × (1 + CAGR)t — multiply the starting value by 1 plus the CAGR raised to the number of years. $5,000 at an 8% CAGR for 6 years ends at $7,934.37. The calculator's Find Ending Value tab does it automatically: enter starting value, CAGR %, and years, and it returns the ending value and total gain.
Divide the ending value by 1 plus the CAGR raised to the years: SV = EV ÷ (1 + CAGR)t. To have $50,000 in 10 years at a 7% CAGR you must start with about $25,418. Select the Find Starting Value tab, enter the ending value, rate, and years, and the calculator back-solves the starting amount for you.
Take the natural log of (ending ÷ starting) divided by the natural log of (1 + CAGR): t = ln(EV/SV) ÷ ln(1 + CAGR). Doubling money at a 10% CAGR takes about 7.27 years; at 20%, about 3.8 years. The Find Number of Years tab solves this, and if you enter a start and end date instead, it computes the exact fractional years from the dates.
Sources: Cipra, Financial and Insurance Formulas; SlickCharts S&P 500 historical returns; US Bureau of Labor Statistics CPI. This tool is for educational purposes only and does not constitute investment advice.
Free Online Calculators
CAGR Quick Tips
- Rule of 72: 72 ÷ CAGR% ≈ years to double your money.
- A 10% CAGR roughly matches the long-run S&P 500 average — anything sustained above that beats the market benchmark.
- Compare CAGRs over the same time window — a 3-year and 10-year CAGR are not directly comparable without context.
- For savings with monthly deposits, use the compound interest calculator instead of CAGR.
- Check real (after-inflation) growth with the CPI inflation calculator.
Worked Example
| Metric | Value |
|---|---|
| Start | $10,000 |
| End | $16,105 |
| Years | 5 |
| CAGR | 10% |
This is what doubling the historical market rate looks like over a typical 5-year holding period.