Processed in this browser
All calculations run locally in this browser tab. No input or file is sent to Finimore, an advertising service, or an analytics service.
Loading this tool…
Estimate the annualized compound growth rate from a positive starting value, ending value and time period.
All calculations run locally in this browser tab. No input or file is sent to Finimore, an advertising service, or an analytics service.
Estimate the annualized compound growth rate from a positive starting value, ending value and time period.
Assumes one start and end value over a constant period. It ignores deposits, withdrawals, fees, taxes and volatility and does not predict future performance.
Estimate the annualized compound growth rate from a positive starting value, ending value and time period.
Assumes one start and end value over a constant period. It ignores deposits, withdrawals, fees, taxes and volatility and does not predict future performance.
Assumes one start and end value over a constant period. It ignores deposits, withdrawals, fees, taxes and volatility and does not predict future performance.
The Compound Annual Growth Rate (CAGR) measures the constant smoothed annual growth rate an investment would require to grow from its beginning balance to its ending balance. Unlike simple arithmetic returns that distort compounding, CAGR uses the geometric formula '(Ending / Beginning)^(1 / Years) - 1'. Both values must be positive, and durations accept decimals from 0.1 years upward, enabling standardized comparisons across various assets.
Consider a hypothetical investment where an initial $10,000 rises to $17,280 over 3 years. The total return is 72.8%, which naively averages to 24.27% annually. However, solving '(17,280 / 10,000)^(1 / 3) - 1' demonstrates an exact annualized CAGR of 20.00%. Conversely, if a $10,000 holding contracts to $8,100 across 2 years, the formula '(8,100 / 10,000)^(1 / 2) - 1' correctly returns a negative annualized growth rate of -10.00%.
This calculation provides a geometric baseline and does not serve as investment advice or guarantee forward returns. CAGR ignores interim drawdown risks and market volatility between dates. Transactional slippage, management expenses, and taxes are excluded. All mathematical operations execute privately in your local browser without transferring information to external systems.
Yes, when the ending figure is lower than the starting balance, the formula produces a negative percentage indicating the annualized contraction rate over that specific duration.
Yes, the period field accepts positive decimal numbers of 0.1 years or higher. For example, 18 months can be entered directly as 1.5 years.
No, CAGR connects only the initial and final endpoints. It assumes a smooth geometric progression and does not capture interim volatility or intervening portfolio drawdowns.