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CAGR Calculator.

Annualized return for a period (start to end value)

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CAGR: 14.87%

CAGR

14.87%

Cite this calculator

Canonical URL: https://mathify.one/en/investment/cagr

Cite as: Mathify. (2026). CAGR Calculator. https://mathify.one/en/investment/cagr

Use Cases

Evaluate Investment Performance

Use CAGR to compare the annualized return of different investments over the same period, helping you assess which performed better.

Example: Compare a stock that grew from $1,000 to $2,000 in 5 years with a bond that grew from $1,000 to $1,500 in the same period.

Set Growth Expectations

Project future value based on a desired CAGR or understand what growth rate is needed to reach a financial goal.

Example: If you want to double your $10,000 investment in 7 years, you need a CAGR of about 10.4%.

Frequently Asked Questions

What is CAGR and how is it calculated?
CAGR (Compound Annual Growth Rate) is the mean annual growth rate of an investment over a specified period longer than one year. It is calculated using the formula: CAGR = (Final Value / Initial Value)^(1 / Years) - 1. This calculator does that for you.
What inputs do I need to use this calculator?
You need three inputs: the initial value of the investment (in dollars), the final value (in dollars), and the number of years the investment was held. Enter these and the calculator will compute the CAGR.
Can I use this calculator for any type of investment?
Yes, as long as you have the initial and final values and the time period in years, you can calculate the CAGR for stocks, mutual funds, real estate, or any investment that has a clear beginning and ending value.

Tips & Common Mistakes

Tips

  • Ensure the initial and final values are in the same currency (dollars) and represent the same investment without additional contributions or withdrawals.
  • Use the number of years as a decimal if the period is not a whole number (e.g., 3.5 years) for more precise results.
  • CAGR smooths out volatility, so it's best used for comparing long-term investments, not for predicting short-term performance.
  • Double-check your inputs: a small error in the final value or years can significantly change the CAGR.

Common Mistakes to Avoid

  • Using the total return percentage instead of the final value. For example, if an investment grew by 50%, the final value is 1.5 times the initial, not 1.5 added to it.
  • Forgetting to account for the time period correctly. CAGR is annualized, so using months instead of years will give an incorrect result.
  • Including additional contributions or withdrawals in the initial or final values, which distorts the growth rate.

Last updated: August 13, 2026