How to use this calculator
- Mode 1 — enter the starting value, ending value, and elapsed years to get the annualized return.
- Mode 2 — enter an initial amount, a target CAGR, and years to project the final value.
- Fractional years are supported, e.g. 3.5.
The formula
CAGR = (End ÷ Begin)^(1 ÷ Years) − 1
CAGR ignores interim volatility and looks only at endpoints, making it the standard metric for comparing long-term returns across funds and markets.
Frequently asked questions
Why CAGR instead of total return?
Total return ignores time: gaining 50% over 5 years is very different from gaining 50% over 15. CAGR converts a result into a per-year compound rate so investments of different lengths can be compared fairly.
What if I added or withdrew money midway?
CAGR assumes no cash flows in between. With deposits or withdrawals, use the fund's growth curve (adjusted NAV) instead of your balance, or an XIRR-style tool that accounts for cash flows.
What does a negative CAGR mean?
The asset shrank on average each year. For example, falling from 10,000 to 8,000 over 5 years is a CAGR of about −4.4%.
Can years be a decimal?
Yes — 3 years and 6 months is 3.5. The calculator interpolates exponentially.
Disclaimer Results are for reference only and do not constitute financial, tax, or legal advice. Actual rates, returns, and fees depend on the terms of your financial institution.