Solvria — Generated on 8/30/2026
CAGR Calculator
Calculate the compound annual growth rate of an investment.
Enter your values to calculate your result.
Formula
CAGR = (Ending Value ÷ Beginning Value)^(1 ÷ Years) − 1
CAGR smooths an investment's growth into a single steady annual rate — the constant yearly return that would take the beginning value to the ending value over the given number of years, even though real returns vary year to year.
Example
An investment growing from $10,000 to $25,000 over 5 years has a CAGR of about 20.11% per year.
Frequently Asked Questions
Is CAGR the same as average annual return?
No — a simple average of yearly returns can overstate growth because it ignores compounding and volatility. CAGR reflects the actual smoothed growth rate.