CAGR Calculator
Use this CAGR calculator to turn a starting value, an ending value and a holding period into one number: the compound annual growth rate. It is the steady yearly rate that would have taken your money from the first value to the second. Enter the period in years or as exact dates, and optionally add dividends or interest received and an inflation rate to see your real return.
Updated
Results
- Total returnOver the whole period
- Gain or lossFinal value plus income minus initial value
- Monthly equivalent rate
- Real CAGR (after inflation)Shown when you enter inflation
- Period (years)From dates: days ÷ 365.25
- Doubling time (years)At this CAGR; shown only for gains
Results are estimates. See the methodology below.
How to use the calculator
- Initial value: what the investment was worth (or cost) at the start.
- Final value: what it is worth at the end, or the price you sold it for.
- Period: choose years (decimals allowed, such as 2.5) or pick a start and end date.
- Advanced options: dividends, interest or coupons you received in cash and did not reinvest, and an average annual inflation rate.
The real CAGR appears only when you enter inflation; doubling time appears only when the result is positive.
The CAGR formula
CAGR = ((final value + income) ÷ initial value)^(1 ÷ years) − 1
- Years from dates = days between the dates ÷ 365.25, so leap years are averaged in.
- Total return = (final value + income) ÷ initial value − 1.
- Monthly equivalent = (1 + CAGR)^(1/12) − 1: the monthly rate that compounds to the same annual result.
- Real CAGR uses the Fisher relation: (1 + CAGR) ÷ (1 + inflation) − 1. Subtracting inflation from the CAGR is only an approximation.
- Doubling time = ln 2 ÷ ln(1 + CAGR), in years.
Income is simply added to the final value, as if received at the end. If you reinvested dividends, they are already in the final value: leave the income field at $0. The calculator assumes no money was added or withdrawn during the period; if you made regular contributions, CAGR overstates or understates your result, and a money-weighted measure (IRR) fits better. Taxes and fees are not deducted unless your final value is already net of them.
Worked examples
1. $10,000 grows to $18,000 in 5 years
Total return is 80%, but the CAGR is 12.47% a year, equal to 0.984% a month. At that pace money doubles in about 5.9 years.
2. Adding dividends and inflation
Same investment, plus $1,200 in cash dividends you spent along the way. The total return becomes 92% and the CAGR 13.94%. With 3% average inflation, the real CAGR is 10.62%: that is the growth in purchasing power.
3. Using exact dates
Bought for $10,000 on March 15, 2021 and worth $18,000 on October 12, 2026: the period is 5.58 years, so the CAGR drops to 11.11%. Rounding the holding period to 5 years would overstate the rate by more than a point.
4. Why CAGR is not the average return
| Year | Value at year end | Return that year |
|---|---|---|
| Start | $10,000 | — |
| 1 | $15,000 | +50% |
| 2 | $7,500 | −50% |
The simple average of the two yearly returns is 0%, yet you lost $2,500. The CAGR shows it: −13.40% a year.
How to read your result
CAGR smooths the path: two investments with the same CAGR can have had very different ups and downs along the way. Use it to compare holdings over the same period, or an investment against an index, a savings rate or inflation. It describes what already happened. A high CAGR over a few strong years says little about what comes next, because past performance does not guarantee future results.
Frequently asked questions
What is a good CAGR?
It depends on the asset, the risk you took and the period. A useful check is to compare your CAGR with inflation over the same years and with a simple benchmark, such as an index fund or a savings account, measured over exactly the same dates.
Is CAGR the same as average annual return?
No. An arithmetic average of yearly returns ignores compounding and is pulled up by volatility. CAGR is a geometric rate: applied every year, it reproduces the actual ending value. In the example above, the average is 0% while the CAGR is −13.40%.
Can CAGR be negative?
Yes. If $10,000 falls to $7,000 over 3 years, the total loss is 30% and the CAGR is −11.21% a year. Doubling time is not shown for a loss.
How do I include reinvested dividends?
Reinvested dividends are already part of the ending value, so leave the income field empty. Use the income field only for cash you received and kept outside the investment, such as dividends paid to your bank account or bond coupons.
What inflation rate should I use?
Use the average annual inflation over your holding period. In the U.S., the usual measure is the Consumer Price Index (CPI-U) published by the Bureau of Labor Statistics; its CPI Inflation Calculator shows how prices changed between two dates.
Can I use it for revenue or user growth?
Yes. The math works for any value that grows over time: company revenue, population, website traffic. The dollar signs simply become units of whatever you are measuring.
Sources
This calculator measures past growth for educational purposes only and is not investment or tax advice. Past performance does not guarantee future results.