CAGR Calculator

Calculate the compound annual growth rate of an investment over time.

Beginning Value ($)

Ending Value ($)

Number of Years

Use Cases

What is the difference between CAGR and average return?

CAGR shows the geometric mean return (compounded). Average return is arithmetic mean and can be misleading.

Is CAGR the same as annualized return?

Yes, CAGR and annualized return mean the same thing.

Can CAGR be negative for a losing investment?

Yes, if the ending value is less than the beginning value, CAGR will be negative, indicating the investment lost value over that time period.

How do I use CAGR to compare different investments?

Calculate CAGR for each investment over the exact same time period to fairly compare their annualized growth rates on an equal basis.