CAGR Calculator

The CAGR calculator finds one constant annual rate from a starting value to an ending value. From 10,000 to 15,000 in 5 years that is 8.45% a year, beside a 50% total return and a 10% simple average. You can also solve for years to a goal, future value, a real rate after inflation, or compare two periods.

Input data

Options: inflation, target, second period

Result

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

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

How results are calculated

(15,000 / 10,000)^(1/5) − 1 ≈ 8.45%
Start10,000
End15,000
years5
CAGR8.45%

Article hook: the same 50% total return in 5 years is CAGR 8.45%, but over 10 years it is only 4.14% — time in the denominator rewrites the story. FV at that rate returns to the end; a second period compares another path. Still three numbers, not a market forecast.

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%.

Enter 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.

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

Formula

Model: compound annual growth rate (CAGR) — a constant yearly rate between two values.

CAGR = (Vend / Vstart)1/t − 1

total return = Vend / Vstart − 1  ·  simple average = total return / t

Real CAGR (optional): (1 + CAGR) / (1 + inflation) − 1 (Fisher).

How to use the calculator

  1. In Starting value, enter the start, for example 10000. In Ending value, enter 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 enter 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%

What CAGR turns 10,000 into 15,000 in 5 years? ≈ 8.45%/yr — below the 10% simple average (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%

What CAGR turns 1,000 into 1,200 in 1.5 years? ≈ 12.92%/yr (simple average ≈ 13.33%).

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%

What is real CAGR after ~3% inflation? Nominal 7.18% → real ≈ 4.05%/yr.

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

What does the end target show at ≈ 8.45% CAGR? The shortfall versus the goal (about −1,000) — without turning this page into full FV with contributions.

Example 5

  • 10,000 → 20,000
  • 10 years

CAGR 7.18%

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

Example 6

  • 1,000 → 1,200
  • 18 months

CAGR 12.92%

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

Example 7 — years to goal

  • Start: 10,000
  • Target: 20,000
  • Rate: 7.18%/year

≈ 10 years

How many years to the end at a given rate? Years-to-goal mode — here about 10 years.

Example 8 — FV

  • Start: 10,000
  • Rate: 8.45%/year
  • 5 years

FV ≈ 15,000

What FV do you get at the same rate as example 1? ≈ 15,000.

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

How does the CAGR formula work?

CAGR = (ending / starting)^(1/t) − 1, where t is years. At 10,000, 15,000, and 5 years the result is about 8.45%.

What does FV mode show with CAGR?

FV = start × (1 + CAGR)^t. At 10,000 and 8.45% for 5 years you get about 15,000 — a check of the same rate, not a full FV tool with contributions.

What is the second period for?

Optionally enter a second start, end, and horizon. The calculator shows CAGR B and the gap versus CAGR A. Two paths, not one merged series.

How does CAGR differ from total return?

Total return is (ending / starting) − 1, or 50% in this example. CAGR spreads that growth into a constant annual rate.

How does real CAGR (Fisher) work?

When you enable inflation i, (1 + CAGR) / (1 + inflation) − 1. It is not a separate portfolio — a correction of nominal CAGR.

Can the horizon be in months?

Yes. The years/months list converts months to years (t / 12) before the formula.

How do I solve for years to goal?

In years-to-goal mode enter start, end, and an annual rate. The calculator uses t = ln(end ÷ start) / ln(1 + r). At 10,000, 20,000, and 7.18% the result is about 10 years.

How is this different from IRR?

CAGR uses two value points and time. IRR needs a yearly cash-flow series.

Is the result a market forecast?

No. It is arithmetic from the numbers you enter, not an instrument recommendation.

What is compound annual growth rate?

It is the constant yearly rate that carries a starting value to an ending value over the years you enter. That rate is CAGR.

How is CAGR counted?

(ending / starting)^(1/years) − 1. At 10,000 → 16,105 in 5 years the result is about 10% a year.

What is years-to-goal mode?

With a known rate and the two values, the calculator solves for how many years reach the end value.

What is future-value mode?

From a starting amount, a rate, and years, it computes the ending value (FV) at a constant growth pace.

Does inflation enter the result?

Optionally you can pair the nominal rate with inflation. CAGR alone, without that option, is nominal.

Is this a return guarantee?

No. It is arithmetic on past or assumed values, not a market forecast.

What if the starting value is zero?

The CAGR formula needs a positive starting value — otherwise there is division by zero.

How does CAGR differ from a simple average annual return?

A simple average divides total growth by the number of years (here 50% / 5 = 10%). CAGR compounds that growth geometrically, so 10,000 → 15,000 in 5 years is ≈ 8.45%, not 10%.

How is CAGR different from compound interest?

CAGR recovers a rate from known start and end values. Compound interest goes the other way: from principal, rate, and time it builds a future value or handles deposits. Bridge: feed a CAGR result into FV mode or a compound-interest calculator.

How do I compare CAGR across two periods here?

In options, enable the second period and enter a second start, end, and horizon. The calculator shows CAGR B and the gap versus CAGR A — two paths side by side, not one merged series.

· Hubert Ligocki

CAGR = (ending / beginning)^(1/t) − 1. At 10,000 → 15,000 in 5 years the result is about 8.45%, total return 50%.

Knowledge sources

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

Page updated in 2026.