BotQNABotQNA
< Finance calculators
CAGR calculator

CAGR Calculator for Annualized Growth Rate and Total Return

Calculate compound annual growth rate from beginning value, ending value, and years. Compare growth with a clean annualized return summary.

0.12%
CAGR
0.8%
Total return
$8,000.00
Dollar growth

Calculate CAGR

Use CAGR to smooth multi-year growth into a comparable annual rate for investments, revenue, users, savings, or portfolio values.

CAGR result

CAGR
0.12%

The smoothed annual growth rate over the full period.

Total return
0.8%

Full-period gain or loss compared with the beginning value.

Dollar growth
$8,000.00

Ending value minus beginning value.

Return multiple
1.80x

Ending value divided by beginning value.

CAGR estimate summary
Beginning value: $10,000.00
Ending value: $18,000.00
Period: 5 years

Estimated result:
- CAGR: 0.12%
- Total return: 0.8%
- Dollar growth: $8,000.00
- Return multiple: 1.80x

Note: CAGR smooths the full-period growth into an annualized rate. It does not mean the value grew at that exact rate every year.

What this CAGR calculator is useful for

Investment history

Convert a multi-year value change into an annualized rate that is easier to compare.

Business growth

Use CAGR for revenue, customer count, website traffic, or other metrics that grow over multiple periods.

Scenario comparison

Compare projects with different start and end values using one annualized growth figure.

How to read CAGR correctly

CAGR smooths volatility

A steady CAGR can hide big up and down years. Review the actual yearly path when risk or drawdown matters.

Use the same period

Comparing a three-year CAGR with a ten-year CAGR can be misleading. Keep time horizons aligned where possible.

Pair it with total return

CAGR shows annualized pace, while total return shows the full-period outcome. The two metrics answer different questions.

Educational estimate only

This CAGR calculator is for educational estimates only. It is not financial, tax, legal, accounting, or investment advice.

CAGR calculator FAQ

What is the CAGR formula?

CAGR equals ending value divided by beginning value, raised to one divided by years, minus one.

Can CAGR be negative?

Yes. If the ending value is lower than the beginning value, CAGR will be negative.

Is CAGR the same as average annual return?

No. CAGR is a geometric annualized rate. A simple average annual return can differ when yearly returns vary.

When should I not use CAGR alone?

Do not use CAGR alone when cash flows, volatility, fees, taxes, or interim losses are important to the decision.