CAGR Calculator - Compound Annual Growth Rate

Year	Value	Gain from Start
Start	$10,000.00	+$0.00
Year 1	$11,398.52	+$1,398.52
Year 2	$12,992.63	+$2,992.63
Year 3	$14,809.68	+$4,809.68
Year 4	$16,880.85	+$6,880.85
Year 5	$19,241.67	+$9,241.67
Year 6	$21,932.67	+$11,932.67
Year 7	$25,000.00	+$15,000.00

How to use this tool

Choose a calculation mode. Choose Calculate CAGR, Project Future Value, Solve Starting Value, or Solve Time Needed based on the value you want to find.
Enter the known values. For CAGR, enter start value, end value, and years. The other modes ask for a rate and duration or target as needed. Fractional years such as 2.5 are supported.
Optionally adjust for inflation. In Calculate CAGR mode, enter an annual inflation assumption to see exact Fisher real CAGR and the end value in starting-year purchasing power.
Read the result and schedule. The result, money multiple, doubling estimates, and a projected line chart and yearly-value table update as you edit inputs. Solve Time Needed requires a non-zero rate and a reachable target.

What Is CAGR?

Compound Annual Growth Rate (CAGR) is the rate at which an investment would have grown each year if it had grown at a perfectly steady pace. Unlike a simple average, CAGR accounts for the compounding effect, making it the standard benchmark for comparing investments over different time horizons.

The CAGR Formula

CAGR = (End Value / Start Value)^(1 / n) − 1, where n is the number of years. Multiply by 100 to express as a percentage.

When to Use CAGR

Use CAGR when you want to compare the historical performance of two investments that may have had different timelines or when projecting what a current balance could be worth in the future at a given return rate.

CAGR vs. Average Annual Return

A simple average of annual returns overstates growth when returns vary year to year. CAGR (the geometric mean) gives the actual compounded rate and is a more accurate measure of real-world investment performance.

Historical CAGR reference

Benchmark	Approx. 10-yr CAGR	Notes
S&P 500 (total return)	~10.7%	Long-run average; individual decades vary
US total stock market	~10.5%	Similar to S&P 500
International developed stocks	~6–8%	Lower but adds diversification
US aggregate bonds	~2–4%	Lower volatility, lower returns
Real estate (REITs)	~8–10%	Varies significantly by sector

Data is approximate; always verify current figures from authoritative sources before making investment decisions.

The Rule of 72

The Rule of 72 gives a quick mental estimate for how long it takes an investment to double: divide 72 by the CAGR percentage.

CAGR	Years to double (Rule of 72)
4%	18 years
6%	12 years
8%	9 years
10%	7.2 years
12%	6 years

Real vs. nominal CAGR

The CAGR shown in financial reports is usually nominal - it does not account for inflation. If you enter an annual inflation assumption, this calculator estimates real growth with the exact Fisher equation:

Real CAGR = (1 + Nominal CAGR) / (1 + Inflation rate) − 1

For example, a 10% nominal CAGR with 3% inflation gives an exact real CAGR of about 6.80%. Subtracting inflation from nominal growth is only a rough mental estimate when both rates are small. Over 30 years, $10,000 growing at 10% becomes about $174,494 nominally, or about $71,889 in starting-year purchasing power after the assumed 3% annual inflation. This is a mathematical adjustment to the rate you enter; it does not measure historical CPI or guarantee what goods and services will cost. When comparing historical returns, check whether figures are reported in real or nominal terms.

Four ways to solve a growth question

Calculate CAGR finds the annualized rate from a start value, end value, and duration. Project Future Value estimates an ending balance from a starting balance and assumed rate. Solve Starting Value works backward from a target balance, rate, and duration, while Solve Time Needed finds how long a starting balance takes to reach a target at a constant rate. Each mode shows a year-by-year path when a schedule can be represented. The path assumes the same annual rate each year, so it is a smoothed illustration rather than a forecast of volatile returns.

Frequently asked questions

What is CAGR?

CAGR (Compound Annual Growth Rate) is the rate at which an investment would have grown if it had grown at a steady annual rate. It smooths out volatility and gives a single representative growth rate over a period.

What is the CAGR formula?

CAGR = (End Value / Start Value)^(1 / Years) − 1. For example, an investment that grows from $1,000 to $2,000 in 5 years has a CAGR of (2000/1000)^(1/5) − 1 ≈ 14.87%.

What is the difference between CAGR and average annual return?

Average annual return is the arithmetic mean of annual returns and can overstate growth when returns fluctuate. CAGR is the geometric mean and accurately reflects the actual compound effect of reinvested returns.

Can CAGR be negative?

Yes. If the end value is less than the start value, the CAGR will be negative, indicating an annualised loss over the period.

How do I calculate an inflation-adjusted CAGR?

Enter an inflation rate in Calculate CAGR mode. The calculator uses the exact Fisher equation: real CAGR = (1 + nominal CAGR) / (1 + inflation rate) − 1. Subtracting inflation from nominal CAGR is only a rough mental estimate for small rates. This adjusts for the rate you enter and does not claim CPI accuracy.

What is the difference between exact doubling time and the Rule of 72?

Exact doubling time is ln(2) / ln(1 + CAGR). The Rule of 72 divides 72 by the CAGR percentage for a quick estimate; it is not exact, especially at higher rates.

What can each calculator mode solve?

Calculate CAGR uses start value, end value, and years. Project Future Value uses a start value, rate, and years. Solve Starting Value works backward from the target end value, rate, and years. Solve Time Needed finds the duration from a start value, target end value, and non-zero rate.