CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) — the smoothed annual rate an investment would need to grow from a beginning to an ending value.
CAGR
7.18%
Assumptions
- Smooths growth into a single annual rate — actual year-to-year returns are rarely this even
How it's calculated
CAGR % = ((ending value / beginning value)^(1/years) − 1) × 100.
Worked example
An investment growing from £10,000 to £20,000 over 10 years has a CAGR shown live above.
Frequently asked questions
How is CAGR different from ROI?
ROI is total return over the whole period; CAGR annualizes that return so investments held for different lengths of time can be compared fairly.