CAGR calculator

The CAGR calculator, compound annual growth rate, finds one flat rate that carries a start to an end. From 10000 to 15000 in 5 years you get 8.45% a year, next to a 50% total return and a 10% simple average. Optionally subtract inflation or compare with a goal.

CAGR = (end ÷ start)^(1/years) − 1. 10000 to 15000 in 5 years is 8.45%. With deposits along the way use IRR.

Input data

Result

Starting value, Ending value, Time horizon and Annual inflation (%). The result shows up here.

How results are calculated

CAGR, the compound annual growth rate, is one flat yearly rate that moves a starting value to an ending value: (end ÷ start)^(1/t) − 1. It smooths the path. Two portfolios with the same CAGR can have very different dips. Total return and a simple yearly average sit beside it so you can see how compounding cuts the average.

From 10000 to 15000 in 5 years CAGR is 8.45%. Total return is 50%, the simple average is 10% a year, and CAGR minus average is −1.55 points. From 1000 to 1200 in 18 months CAGR is 12.92% annualized. From 10000 to 20000 in 10 years with 3% inflation, nominal CAGR is 7.18% and real CAGR is 4.06%.

Type Starting value, Ending value, and a Time horizon plus the years or months list. Inflation and an ending goal sit behind toggles. The calculator does not solve “how many years?”. The 10000, 15000, and 5 placeholders are the first example.

Rate of return next door stays with total return; CAGR is only a helper there when you turn on a horizon. IRR, the internal rate of return, needs year-by-year cash flows. A real rate from a nominal rate and inflation, with no start and end, uses Fisher next door.

CAGR does not know deposits or withdrawals along the way. If you added 200 every month, 8.45% will lie. An ending goal shows a surplus or a gap, not a mini FV.

Type 10000, 15000, and 5 years. Check 8.45% and 50%. Then double to 20000 in 10 years to see 7.18%.

How to use the calculator

  1. In Starting value, type the start, for example 10000. In Ending value, type the end, for example 15000.
  2. Time horizon is a number plus the years or months list. 5 years is the first example, 18 months the second.
  3. Optionally turn on inflation, for example 3%, or an ending goal to compare with the result.
  4. Click Calculate. At 10000, 15000, and 5 years, CAGR should be 8.45% and total return 50%.
  5. With deposits along the way, open IRR. Bare return without annualizing lives on rate of return.

CAGR versus the simple average in this calculator

CAGR is the one flat rate from start to end. From 10000 to 15000 in 5 years you get 8.45% a year, next to a 50% total return and a 10% simple average.

CAGR
(end ÷ start)^(1/years) − 1. 15000 / 10000 to the power 1/5 is 8.45% a year. Not IRR with deposits along the way.
Total return
The raw percent from start to end. Here 50% from 10000 to 15000. The 10% simple average sits above CAGR 8.45%.
real CAGR
Optional after you type inflation. 10000 to 20000 in 10 years at 3% inflation is 7.18% nominal and about 4.06% real.

Usage examples

Example 1

  • Starting value: 10,000
  • Ending value: 15,000
  • Time: 5 years

CAGR 8.45%
Total return 50.00%
Simple average 10.00%/y
CAGR − average −1.55%

With compound growth CAGR (8.45%) is lower than the simple average (10%/year) - gap −1.55 pp.

Example 2

  • Starting value: 1,000
  • Ending value: 1,200
  • Time: 18 months

CAGR 12.92%
Total return 20.00%
Simple average 13.33%/y
CAGR − average −0.41%

Short horizon: CAGR is still annualised (≈12.92%/year), simple average ≈13.33%/year.

Example 3

  • Starting value: 10,000
  • Ending value: 20,000
  • Time: 10 years
  • Inflation: 3%

CAGR 7.18%
Total return 100.00%
Simple average 10.00%/y
CAGR − average −2.82%
Real CAGR 4.06%

After ~3% inflation real CAGR falls to ≈4.05%/year - nominal growth does not fully protect purchasing power.

Example 4

  • Starting value: 10,000
  • Ending value: 15,000
  • Time: 5 years
  • Target ending value: 16,000

CAGR ≈8.45%
Total return 50.00%
Shortfall vs target ≈ −1,000

Primary remains CAGR from your inputs. The target only shows the gap - hitting it in 5 years needs a higher CAGR (in the note), without turning this page into FV.

Example 5

  • 10,000 → 20,000
  • 10 years

CAGR 7.18%

What CAGR turns 10,000 into 20,000 in 10 years? CAGR 7.18%.

Example 6

  • 1,000 → 1,200
  • 18 months

CAGR 12.92%

What CAGR turns 1,000 into 1,200 in 18 months? CAGR 12.92%.

Related calculators

Rate of return calculator

The rate of return calculator computes total return from two values: a start and an end.

Use calculator →

Real rate of return

The real rate of return calculator applies the Fisher formula to a nominal rate and inflation.

Use calculator →

Future value calculator

The future value calculator, FV, grows a starting amount and optional contributions at the compounding you pick.

Use calculator →

Compound interest

The compound interest calculator multiplies principal by (1 + rate/100) to the power of years.

Use calculator →

IRR: internal rate of return

The IRR calculator, internal rate of return, finds the yearly rate that makes NPV zero.

Use calculator →

All finance calculators

FAQ

What CAGR is 10000 to 15000 in 5 years?

8.45% a year. Total return 50%, simple average 10%, gap −1.55 points.

What CAGR is 1000 to 1200 in 18 months?

12.92% annualized. Total return 20%, simple average 13.33% a year.

What is real CAGR from 10000 to 20000 in 10 years at 3% inflation?

Nominal CAGR 7.18%, real 4.06%. Total return 100%.

How is CAGR different from total return?

Total return is (end − start) ÷ start, here 50% with no time. CAGR spreads that growth across flat years.

Can I include deposits?

No. For regular contributions use IRR. CAGR assumes one start and one end.

Will the calculator say how many years to a goal?

No. The ending goal only compares the result with a target. It does not solve the horizon.

Why is CAGR lower than the simple average?

Because of compounding. 50% in 5 years is not 10% compounded. 1.0845^5 ≈ 1.50, while 1.10^5 would be more.

How is this different from Fisher's real rate?

There you type a nominal rate and inflation. Here you type start, end, and time, and inflation is an option for real CAGR.

Does 8.45% show the worst year?

No. The path is smoothed. Dips and peaks are not drawn.

Do horizon months annualize?

Yes. 18 months is 1.5 years in the exponent, which is why 20% total return becomes 12.92% a year.

Knowledge sources

CAGR is the average yearly rate from start, end and years. Any inflation rate is the one you type.

Page updated in 2026.