CAGR Calculation
Calculate the compound annual growth rate (CAGR).
This calculation provides an estimated result; current legislation and official calculations prevail. For binding transactions, consult your financial advisor or the relevant institution.
$
$
years
Result
%20,1124
Compound annual growth rate (CAGR): 20,1124%
Result in all units
Step-by-step solution
CAGR = (end/start)^(1/year) − 1
What Is CAGR (Compound Annual Growth Rate)?
CAGR reduces the growth of an investment between its starting and ending value to a single annual rate, as if it had grown at the same rate every year. It allows fair comparison of investments with fluctuating returns.
How is it calculated?
How Is CAGR Calculated?
CAGR = (final value ÷ initial value)^(1 ÷ years) − 1
- Enter the starting value, ending value and number of years.
- The result gives the average annual growth as a percentage.
For example, 10.000 $ → 20.000 $ over 4 years: (2)^(1/4) − 1 ≈ 18,9%.
Frequently Asked Questions
Is CAGR different from average return?
Yes; CAGR accounts for compound growth and gives a more realistic result than a simple arithmetic average.