Cagr Calculator
Calculator
Results
- Compound annual growth rate (%)
- 13.322433
- Total growth (%)
- 140
- Multiple of invested capital
- 2.4
Investing results
| Compound annual growth rate (%) | 13.322433 |
| Total growth (%) | 140 |
| Multiple of invested capital | 2.4 |
formula-map diagram
- Compound annual growth rate (%)
- 13.322433
- Total growth (%)
- 140
- Multiple of invested capital
- 2.4
Investing relationship
Formula
CAGR = (ending ÷ beginning)^(1 ÷ years) − 1= 13.322433403702
Note
This is not investment advice. It is a simplified model: it applies the displayed standard formula to the figures you entered, ignores taxes, fees, currency effects and credit risk, and assumes cash flows arrive exactly as scheduled. Real markets do not behave that way, and past or projected returns do not guarantee future results. Check the assumptions and consult a licensed adviser before acting on any figure.
More in Investing and markets
See all →Frequently asked questions
What does CAGR actually measure?+
Compound Annual Growth Rate smooths an investment's total return over multiple years into a single, steady annual growth rate that would produce the same ending value from the same starting value. It's calculated as (ending value / beginning value)^(1/years) minus 1.
Why is CAGR different from the average of yearly returns?+
A simple average of yearly percentage returns can overstate real growth because it ignores compounding and the effect of large losses; a 50% loss followed by a 50% gain averages to 0% but actually leaves you down 25%. CAGR reflects the real, compounded path from start to end value.
Does CAGR account for volatility along the way?+
No — CAGR only looks at the beginning and ending values, smoothing over any ups and downs in between. Two investments with the same CAGR can have very different risk profiles depending on how volatile the path was.
Can CAGR be used to predict future returns?+
CAGR describes historical performance over a specific completed period; it is not a guarantee or reliable predictor of future returns, since market conditions, contributions, and withdrawals can all change the trajectory going forward. This is general information, not investment advice.
What happens if the ending value is lower than the starting value?+
CAGR still calculates correctly and will simply return a negative percentage, representing an average annual decline over the period rather than growth. It works the same way mathematically whether the trend was up or down.