# CAGR Calculator (Compound Annual Growth Rate)

URL: https://speedycalculator.com/calculators/finance/cagr/
Last updated: 2026-10-25

> The CAGR calculator works out the compound annual growth rate between a starting and an ending value over a number of years – or, given a growth rate, the final value – plus the total change.

## Inputs

- Initial value
- Number of periods
- Final value

## Results

- Compound annual growth rate (CAGR)
- Change in value
- Total growth
- Years to double at this rate

## Formula

```
CAGR = (final value ÷ initial value)^(1 ÷ periods) − 1
Final value = initial value × (1 + CAGR)^periods
```

## Explanation

CAGR smooths out the ups and downs of an investment or business metric into one steady yearly rate. It is ideal for comparing growth over time, but hides volatility – two investments with the same CAGR can have very different risks.

### How to use the CAGR Calculator

- **Initial value**
- **Number of periods**
- **Final value**
- Every result field is editable: type into **Compound annual growth rate (CAGR)** and **Final value** plus every other field update to match.

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the initial value, final value and the number of periods (usually years). Type into the CAGR to find the final value.

### Tips

- Use the nominal annual rate and pick the compounding frequency your bank or broker states.
- Small differences in return or fees compound into large differences over decades.
- Run the calculation with a cautious, a central and an optimistic return to see the range of outcomes.
- Past returns do not guarantee future returns – nothing here is investment advice.

### Common mistakes to avoid

- Comparing an APR with an APY or effective rate.
- Ignoring inflation, taxes and fees when judging a real return.
- Entering a percentage as a decimal (5 instead of 0.05 is correct here).

### Inputs explained

FieldWhat to enterInitial valueAmount in your currencyNumber of periodsA numberFinal valueAmount in your currency

### What each result means

- **Compound annual growth rate (CAGR)** = (([Final value]÷[Initial value])^(1÷[Number of periods]) - 1)×100
- **Change in value** = [Final value] - [Initial value]
- **Total growth** = ([Final value]÷[Initial value] - 1)×100
- **Years to double at this rate** = ln(2)÷ln(1 + [Compound annual growth rate (CAGR)]÷100)

### Example values

How the main result changes when **Final value** changes and everything else stays at the example values above:

Final valueCompound annual growth rate (CAGR) (%)9,000-2.0913,5006.1918,00012.4722,50017.6127,00021.9836,00029.2

## Worked example

Inputs — Initial value: $10,000; Number of periods: 5; Final value: $18,000.

Results — **Compound annual growth rate (CAGR) = 12.47 %**; Change in value = $8,000.00; Total growth = 80 %; Years to double at this rate = 5.9.

## FAQ

**What is a good CAGR?**
For stocks, 7–10% a year has been typical over the long run.

**How is CAGR different from average return?**
CAGR is the geometric average – it accounts for compounding.

**Can CAGR be used for revenue?**
Yes, it's widely used for revenue, users and other business metrics.

**What formula does the CAGR Calculator use?**
CAGR = (final value ÷ initial value)^(1 ÷ periods) − 1.


## Sources

- [U.S. SEC – Investor.gov compound interest and investing basics](https://www.investor.gov/)