Investing
CAGR Calculator
CAGR is the single annual rate that would grow your starting amount to its ending value over the period — the standard way to compare investments with different time horizons. Enter the beginning and ending values and the number of years to see it.
Formula shown below · Tested against worked examplesHow we verify
Compound annual growth rate: 7.18%
Compound annual growth rate
7.18%
The smoothed annual rate over the whole period.
- Total return
- 100%
- Total gain
- $10,000
- Over
- 10
Years.
Compare scenariosTry three values of one input
| Beginning value | |||
|---|---|---|---|
| Compound annual growth rate | 8.31% | 7.18%−1.14% | 6.16%−2.15% |
| Total return | 122.22% | 100%−22.22% | 81.82%−40.4% |
| Total gain | $11,000 | $10,000−$1,000 | $9,000−$2,000 |
Every other input stays at the value you set above — currently $10,000 for beginning value. Differences are measured against the first column.
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How this calculator works
CAGR = (ending value ÷ beginning value) ^ (1 ÷ years) − 1. Total return is (end − begin) ÷ begin. When the ending value is below the beginning, both figures are negative (a compound annual loss).
It reflects only the start and end values over the stated years — it doesn't account for contributions, withdrawals, dividends taken as cash, or the volatility of the path. It's a comparison tool, not a full performance measure.
Formula
CAGR = (End ÷ Begin)^(1/t) − 1- End
- Ending value
- Begin
- Beginning value
- t
- Number of years
A headline total return is meaningless without its period attached. CAGR also corrects a trap in simple averages: an investment that gains 50% then loses 50% averages zero but has actually lost 25%. What CAGR hides is the path — it says nothing about volatility along the way.
What this assumes
- Beginning and ending values as entered, with no contributions or withdrawals in between — those make a money-weighted return the right measure instead.
- The period is exact years; part-years distort the annualised figure.
- It says nothing about the path, only the endpoints.
What changes this number
- The period
- A total return is meaningless without it. 50% over ten years is 4.14% a year; over five it is 8.45%.
- Contributions during the period
- Break the calculation. With cash flows, CAGR overstates or understates depending on their timing.
- Volatility
- Invisible here by design. Two investments with identical CAGR can have felt completely different to hold.
A worked example
Take the $10k → $20k over 10 years scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.
What you enter
- Beginning value
- $10,000
- Ending value
- $20,000
- Number of years
- 10 years
What it returns
- Compound annual growth rate
- 7.18%
- Total return
- 100%
- Total gain
- $10,000
- Over
- 10
Sources
This calculator uses no external data — the result follows entirely from the formula above and the values you enter, so there is nothing to cite beyond the arithmetic.
Calculator last reviewed August 8, 2026. How we verify
Try an example
Frequently asked questions
What is CAGR?
The compound annual growth rate is the constant yearly rate that would take an investment from its starting value to its ending value over a period, as if it grew smoothly. It strips out the year-to-year volatility, giving one number you can compare across investments and time frames.
How do you calculate CAGR?
Divide the ending value by the beginning value, raise it to the power of 1 divided by the number of years, then subtract 1: CAGR = (End ÷ Begin)^(1/years) − 1. Growing $10,000 to $20,000 over 10 years is a CAGR of about 7.18% — not 10%, because the gains compound.
What's the difference between CAGR and total return?
Total return is the overall percentage gain over the whole period ($10k to $20k is +100%); CAGR annualizes that into a per-year rate (about 7.18%). Total return answers 'how much did it grow?' while CAGR answers 'how fast per year?' — the latter is what lets you compare a 3-year and a 10-year investment fairly.
What are the limitations of CAGR?
CAGR assumes smooth growth and ignores volatility, interim contributions or withdrawals, and the actual path — two investments with the same CAGR can have wildly different year-to-year swings and risk. Use it to compare endpoints, but pair it with a look at the volatility and drawdowns along the way.
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.