CAGR Calculator
Measure the compound annual growth rate between two investment values. Enter your initial value, final value and time period to find the true annualised return.
- Initial value
- $100,000
- Final value
- $250,000
- Total gain
- $150,000
What is CAGR?
CAGR (Compound Annual Growth Rate) is the rate at which an investment would have grown if it grew at a steady rate every year. It smooths out the volatility of year-to-year returns and gives a single number that represents the true annualised performance of an investment.
CAGR is useful for comparing investments of different durations — a fund that grew 150% over 8 years and one that grew 80% over 4 years can be meaningfully compared only after converting both to CAGR.
How to use the CAGR calculator
Enter three values: your starting investment value, the final value after the holding period, and the number of years. The calculator returns the CAGR as a percentage per year.
- Initial value — what you invested or what the portfolio was worth at the start.
- Final value — the current or exit value of the investment.
- Time period — the number of years between the two values.
The CAGR formula
The result is expressed as a decimal; multiply by 100 for a percentage. A CAGR of 0.12 means 12% per year.
A worked example
You invested 100,000 and it grew to 250,000 over 8 years.
| Metric | Value |
|---|---|
| Initial value | 100,000 |
| Final value | 250,000 |
| Years | 8 |
| CAGR | 12.1% p.a. |
The total gain is 150%, but expressed as CAGR it is 12.1% per year. This lets you directly compare this investment against any benchmark or alternative.