CAGR Calculator to Calculate Compound Annual Growth Rate

Compound Annual Growth Rate Calculator Sign

This calculator will calculate the compound annual growth rate (CAGR) given the beginning value of an investment, the ending value, and the number of years that separate the two values.

Plus, the calculated results will also include the step by step process the calculator used to calculate CAGR, along with an annual growth chart showing how the investment would grow if you earned the return rate over the entered number of years.

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Also on this page:

Compound Annual Growth Rate Calculator

Calculate an investment's compound annual growth percentage rate and see the steps involved in solving the CAGR formula.

Learn More

Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
PV:Present value:Initial investment:Initial investment:

Initial investment:

Enter the amount of the initial investment (also referred to as Present Value, or PV), without the dollar sign or any commas.

$
FV:Future value:Current or future value:Current or future value of investment:

Current or future value of investment:

Enter the current or target future value of the investment, without the dollar sign or any commas.

$
# years:# of years:Number of years:Number of years:

Number of years:

Enter the number of years between the initial investment and the current value or target future value.

#
CAGR:CAGR:Compound annual growth rate (CAGR):Compound annual growth rate (CAGR):

Compound annual growth rate (CAGR):

Based on your entries, this is the compound annual growth rate of the investment.

If you would like to save the current entries to the secure online database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

Help and Tools

Learn

What CAGR is, how to calculate it, what it's useful for, plus a reverse CAGR calculator.

What is CAGR?

CAGR is an acronym for Compound Annual Growth Rate, which is a formula used to estimate the annual return rate an investment would need to earn to grow from a given beginning value to a given ending value.

What is CAGR Useful For?

The CAGR calculation is primarily useful for the following three scenarios:

  1. When you want to know the average return rate on an investment that fluctuates widely from year to year.
  2. When you want to know what annual rate of return needed to earn to achieve a future target value.
  3. When you need to forecast the future value of an investment.

How to Calculate CAGR

When it comes to calculating CAGR, you have three options: a spreadsheet function, an online calculator like the one on this page, or a handheld calculator capable of raising a base number to a fractional power.

If you are attempting to use a spreadsheet to calculate CAGR (Excel, OpenOffice, etc.), I use the RRI function, which calls for the following inputs:

RRI(nper, pv, fv)

Where
  • nper represents the number of periods.
  • pv represents the starting or present value of the investment.
  • fv represents the ending or future value of the investment.

If you are attempting to calculate CAGR manually using a handheld calculator, here is the compound annual growth rate formula and an example showing the steps to solving it.

CAGR Formula
FV(1/n)− 1
PV 
Example: PV = 1000, FV = 2000, n = 10 (years)
StepExplanationEquationResult
#1Divide FV by PV:2000 ÷ 1000= 2.00000
#2Raise Step #2 to the power of 1/n (n = yrs):(2.00000)1/10= 1.07177
#3Subtract 1 from Step #2:1.07177 − 1= 0.07177
#4Multiply Step #3 by 100:0.07177 × 100= 7.17735
#5Round Step #4 and add % sign:CAGR= 7.177%

Reverse CAGR Calculator

If you already know the compound annual growth rate, you can use the following calculator to calculate an investment's future value (or maturity value). Enter the investment amount, the compound annual growth percentage rate, and the number of periods (months or years) and the calculator will calculate the investment's future/maturity value and display a period-by-period growth chart.

Reverse CAGR Calculator
Investment:
$
CAGR:
%
Periods:
#
Future value:

In case you're interested, the reverse CAGR formula in Excel is the FV function.

FV(rate, nper, pmt, pv, type)

Where
  • rate represents the decimal equivalent of the compound growth percentage rate (6% = .06).
  • nper represents the number of periods (months or years).
  • pmt represents an amount that is regularly added to the investment.
  • pv represents the starting or present value of the investment.
  • type represents the timing of the payment.

If you want to calculate the reverse CAGR of $1,000 invested for 5 years, with a CAGR of 6%, you would set a cell equal to the following:

=FV(.06,5,,-1000,0)

In the above example, the reverse CAGR would be $1,338.23.

Adjust Calculator Width:

Move the slider to left and right to adjust the calculator width. Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen. Moving the slider to the left will bring the instructions and tools panel back into view.

Also note that some calculators will reformat to accommodate the screen size as you make the calculator wider or narrower. If the calculator is narrow, columns of entry rows will be converted to a vertical entry form, whereas a wider calculator will display columns of entry rows, and the entry fields will be smaller in size ... since they will not need to be "thumb friendly".

Show/Hide Popup Keypads:

Select Show or Hide to show or hide the popup keypad icons located next to numeric entry fields. These are generally only needed for mobile devices that don't have decimal points in their numeric keypads. So if you are on a desktop, you may find the calculator to be more user-friendly and less cluttered without them.

Stick/Unstick Tools:

Select Stick or Unstick to stick or unstick the help and tools panel. Selecting "Stick" will keep the panel in view while scrolling the calculator vertically. If you find that annoying, select "Unstick" to keep the panel in a stationary position.

If the tools panel becomes "Unstuck" on its own, try clicking "Unstick" and then "Stick" to re-stick the panel.