CAGR answers: "If value grew smoothly at the same rate every year, what yearly rate would take me from start to end?" Enter your beginning amount, ending amount, and the number of years. The result is an annualized percentage useful for comparing long horizons; it ignores path volatility and cash flows in between.
CAGR (compound annual growth rate) is the constant yearly rate that would grow a starting amount to an ending amount over n years, ignoring bumps in between. It is a summary statistic for long horizons, not a prediction.
CAGR ≈ (end ÷ start)^(1/n) − 1, where n is years in whole or decimal form. The tool also shows the growth factor end ÷ start. Starting value must be positive and n must be positive.
Yes. CAGR is negative in that case, meaning an average decline per year in this smoothed sense. It does not show each year’s actual return.
No. This page only uses start, end, and years. If you added or withdrew money along the way, CAGR is not an accurate performance measure for that account.
No. Educational illustration only. Markets vary; consult a professional for decisions.
All math runs in your browser; numbers are not sent to a server.