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CAGR Calculator
Find the yearly growth rate of an investment, or project its future value.
1. Your numbers
2. What it means
Your investment against savings-account growth and inflation.
CAGR
13.99%
per year
Ending value
$25K
Total gain
+150%
2.50x your money
Doubles in
5.3 yrs
Rule of 72
- Your growth (14.0% a year)
- Savings account (2%)
- Typical inflation (3%)
Growing 14.0% a year beats typical 3% inflation, so your money gains real buying power.
For education only, not investment advice. Calculated in your browser; nothing you enter is saved or sent anywhere. Real returns vary.
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How it works
The CAGR formula
CAGR = (Ending value ÷ Starting value)^(1 ÷ years) − 1. It gives the steady yearly rate that would take you from the starting value to the ending value, smoothing out ups and downs.
When to use it
Use CAGR to compare investments held for different periods, such as a stock and a fund. It ignores the path taken and any money added or withdrawn along the way; for regular investments use the monthly investment calculator.
Worked examples
Finding the rate
10,000 that grew to 25,000 in 7 years has a CAGR of about 13.99% a year (2.5x your money), which would double it in roughly 5.3 years.
Projecting forward
10,000 growing at 8% a year becomes about 21,589 after 10 years. The Rule of 72 says money doubles in about 72 ÷ 8 = 9 years at that rate.
Tips for using it well
- Compare CAGR across assets over the same period; a great 1-year return can hide a poor 5-year one.
- Always compare against inflation: a 3% CAGR with 3% inflation means no real growth.
- For regular monthly deposits use the monthly investment calculator, since CAGR assumes one lump sum.
Frequently asked questions
What is a good CAGR?
It depends on the asset and the market. Broad stock indexes have historically returned roughly 7 to 10 percent a year in many developed markets (higher in some emerging ones), bonds less. Past returns do not guarantee future results.
Is CAGR the same as average return?
No. Average return is a simple mean of yearly returns, while CAGR accounts for compounding and is the better measure of actual growth.
How do I calculate CAGR in Excel or Google Sheets?
Use =(End/Start)^(1/Years)-1, or the RRI function: =RRI(Years, Start, End).
What is the Rule of 72?
Dividing 72 by the yearly return gives a quick estimate of years to double your money. At 12 percent it takes about 6 years.
Can CAGR be negative?
Yes. If the ending value is lower than the starting value, the CAGR is negative.
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