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CAGR Calculator

Calculate compound annual growth rate or solve for future value and initial value over a period.

CAGR Inputs

Results computed instantly — your data never leaves your device.

CAGR Results

Real-Time

CAGR

9.14%

Total growth

30.00%

Period

3 years

CAGR smooths a path into one annualized rate; it does not describe volatility or interim cash flows.

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How to Use the CAGR Calculator

  1. 1

    Choose Calculate CAGR, Find Future Value, or Find Initial Value.

  2. 2

    Enter the known values and the number of years.

  3. 3

    When solving for a value, enter the annual rate as a percentage.

  4. 4

    Review the annualized result and total growth, then consider volatility and interim cash flows.

Formula & Mathematical Basis

CAGR = (FV ÷ PV)^(1 ÷ t) − 1; FV = PV × (1+r)^t; PV = FV ÷ (1+r)^t.

Variable Key

PV

Initial or present value

FV

Final or future value

r

Annual growth rate as a decimal

t

Number of years or periods

📝 CAGR is a smoothed annualized rate. It does not show the path between the starting and ending values and is not a substitute for a risk or cash-flow analysis.

Step-by-Step Examples

1

Calculate annualized growth

Scenario: A value rises from $1,000 to $1,300 over three years.

  1. 1.Enter 1,000 as the initial value.
  2. 2.Enter 1,300 as the final value.
  3. 3.Enter three years.
  4. 4.Read CAGR and total growth.
✅ The annualized rate is about 9.14%, while total growth is 30%. The exact intermediate path is unknown.

Practical Use Cases

  • Compare growth over different time horizons.
  • Solve for a future value under a constant annual rate assumption.
  • Explain annualized returns in a business or classroom model.

Common Pitfalls

  • Calling CAGR an average of yearly returns.
  • Ignoring deposits, withdrawals, fees, taxes, or volatility.
  • Using zero or negative values in the basic positive-value formula.

Frequently Asked Questions

Is CAGR the same as average return?

No. CAGR is a geometric annualized rate between two endpoints and does not describe the arithmetic average or volatility.

Can CAGR be negative?

Yes, when the final value is below the initial value and both are positive.

Does CAGR include cash contributions?

Not in this basic endpoint model. Use a cash-flow-aware return method for irregular contributions or withdrawals.

Savings & Investing Calculators

Project compound growth, retirement balances, inflation effects, and annualized investment performance with stated assumptions.

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