Free CAGR Calculator Online — Compound Annual Growth Rate
CAGR (Compound Annual Growth Rate) is the single smoothed yearly rate that would grow a starting value into an ending value over a period — it strips out the year-to-year noise so you can compare investments or businesses fairly. It's more honest than a simple average because it accounts for compounding. Enter the start value, end value and number of years to get the CAGR instantly.
Frequently Asked Questions
- 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 each year: CAGR = (Final ÷ Initial)^(1 ÷ years) − 1.
- Is CAGR the same as average return?
- No — CAGR is a geometric mean and accounts for compounding. A simple average return ignores the compounding effect and often overstates actual growth.