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Investment Calculators

CAGR Calculator

Calculate the compound annual growth rate between a starting and ending value over any number of years.

$
$
years

CAGR

13.32%

Total growth
140%
Absolute gain
$14,000
Smoothed growth path
Yr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7

How this calculator works

CAGR = (end ÷ start)^(1 ÷ n) − 1

n
the number of years between the two values

Example calculation

Illustrative example — not advice

Worked example — the cagr calculator as it loads, using the default figures below.

  1. 01Enter starting value: $10,000.
  2. 02Enter ending value: $24,000.
  3. 03Enter years: 7 years.
  4. 04Read the cagr from the results panel: 13.32%.

CAGR: 13.32%. Total growth: 140%. Absolute gain: $14,000.

These figures come straight from the calculator above running on the values listed, so you can retype them and confirm every number yourself. Change any input and the results update immediately. Illustrative only — not a quote, offer or recommendation.

Important considerations

  • CAGR smooths volatility completely — it says nothing about the path taken.
  • Contributions made along the way make CAGR misleading; use a money-weighted return instead.

Terms used here

Frequently asked questions

Is CAGR the same as average return?

No. A simple average of yearly returns overstates growth whenever returns vary.

Disclaimer

Legamoney calculators are educational tools. Results are estimates based on the figures you enter and do not constitute financial, tax or legal advice.

Last reviewed 2026-08-01