CAGR Calculator

CAGR is the steady yearly growth rate that turns the beginning value into the ending value: 10 000 growing to 20 000 in 5 years is a CAGR of 14.8698 %.

Beginning value:

Ending value:

Number of years n:

CAGR =

14.8698354997035 %

Precision

Full answer, then cut to fewer decimals (not rounded):

14.8698354997035 %
14.869835499703 %
14.86983549970 %
14.8698354997 %
14.869835499 %
14.86983549 %
14.8698354 %
14.869835 %
14.86983 %
14.8698 %
14.869 %
14.86 %
14.8 %

Total growth: 100 %
Growth multiple: 2×

Step-by-step solution

CAGR = (Ending ÷ Beginning)^(1/n) − 1
CAGR = (20,000.00 ÷ 10,000.00)^(1/5) − 1
CAGR = 2^0.2 − 1 = 14.8698 %

CAGR Formula

CAGR = (End ÷ Begin)^(1/n) − 1

n number of years

Worked Example

An investment growing from 10 000 to 20 000 in 5 years:

CAGR = (Ending ÷ Beginning)^(1/n) − 1
CAGR = (20,000.00 ÷ 10,000.00)^(1/5) − 1
CAGR = 2^0.2 − 1 = 14.8698 %

Growth multiple: 2×

CAGR compared with average growth

CAGR is the constant yearly rate that takes the beginning value to the ending value, ignoring the path in between. It is always lower than or equal to the arithmetic mean of the yearly growth rates when growth varies. A fund that gains 50 % and then loses 50 % has an average return of 0 % but a CAGR of −13.4 %, because it ends at 75 % of where it started. Use the exact number of years, including fractions, for periods that do not fall on whole years.

Frequently asked questions

How do I calculate CAGR in Excel?

Use =(End/Begin)^(1/Years)−1, or =RRI(Years, Begin, End). For 10 000 to 20 000 over 5 years both give 14.87 %.

Is CAGR the same as average annual return?

No. The arithmetic average of yearly returns ignores compounding and is usually higher. CAGR is the geometric average: the constant rate that gives the same end value.

Can I use CAGR for a SIP?

Not directly: CAGR assumes a single lump sum. For regular monthly investments use XIRR (or the IRR calculator with the cash flows).

Sources

Last reviewed: 2026-10-15. Factors are stored exactly and computed with 50-digit decimal arithmetic. See how we verify conversion factors.

Cite this page

APA

Scientific Converters. (2026, October 15). CAGR Calculator. Retrieved October 25, 2026, from https://scientificconverters.com/calculators/cagr-calculator/

IEEE

Scientific Converters, "CAGR Calculator," scientificconverters.com. Accessed: Oct. 25, 2026. [Online]. Available: https://scientificconverters.com/calculators/cagr-calculator/