Free calculator
CAGR calculator
Compound annual growth rate (CAGR) from three inputs: beginning value, ending value, and holding time (years + months or a from / to date range). We show CAGR %, total simple return %, ending ÷ beginning multiple, and absolute change. This is the same two-point annualization as the ROI tool’s CAGR line—focused here for PV/FV/time questions. Not IRR, not contributions or SIP schedules (use compound interest or SIP), not tax-adjusted—see methodology.
When this CAGR view helps
You already have two snapshots and want a headline yearly rate that connects them—without building a full cash-flow model.
- Portfolio or account labels at two dates: translate the multiple into a CAGR for reporting or sanity checks.
- Business metrics (revenue, users, MRR) at two year-ends: a smooth growth rate for decks—not a substitute for audited financials.
- Spreadsheet parity: match
POWER/ caret patterns in Sheets and Excel before you extend the model. - Teaching: see how time in the exponent differs from ROI ÷ years shortcuts on some sites.
CAGR answers: “What constant yearly return would take PV to FV over t years?” It does not claim the path was smooth—only a summary rate.
Core formula
With PV > 0, FV > 0, and holding years t > 0: CAGR = (FV ÷ PV)^(1/t) − 1. Total simple return % = (FV − PV) ÷ PV × 100 (this is not CAGR).
How we measure t
Years + months → years + months ÷ 12. Dates → calendar span divided by 365.25 days per year (same policy as the ROI calculator).
What we do not model
IRR/NPV on many cash flows, monthly contributions (SIP), inflation, taxes, and fees need their own engines—see linked tools below.
For spreadsheet parity, keep currencies and definitions aligned with your workbook. For gain and total ROI % with the same two money points, use the ROI calculator. For contribution schedules and compounding picks, open the compound interest calculator. For level PMT/PV/FV with an explicit rate, use the TVM calculator. For a quick doubling heuristic vs a rate, see the rule of 72 calculator.
Google Sheets & Excel
English US/UK function names below. CAGR uses a power on FV ÷ PV; total return % is (FV − PV) ÷ PV.
=(B2/A2)^(1/C2)-1Format the cell as percent. PV and FV must use the same units.
=POWER(B2/A2,1/C2)-1In localized Excel, POWER may appear as POTENZ (DE) or PUISSANCE (FR)—use Formulas → Insert function for your language pack.
Frequently asked questions
What is CAGR?
Compound annual growth rate is the constant yearly rate that would grow beginning value (PV) to ending value (FV) over t years: (FV ÷ PV)^(1/t) − 1. It summarizes two endpoints—it does not prove growth was steady year to year.
What formula does this page use?
CAGR = (FV ÷ PV)^(1/t) − 1 with t in years (fractional years allowed). Total simple return is (FV − PV) ÷ PV—do not confuse it with CAGR.
How is this different from the ROI calculator?
The ROI page emphasizes gain and total ROI % on invested vs returned, then adds the same annualization when you supply time. This page is PV / FV / time first for people who already think in CAGR terms—one formula family, two layouts.
Can I model monthly savings (SIP) here?
No. Contributions each period need a timeline engine. Use the compound interest or SIP calculator for deposit schedules; CAGR here is two points + one span only.
Is “SIP CAGR” the same as this tool?
Many marketing pages reuse the word CAGR beside SIP flows. This page does not cash-flow monthly investments—use the SIP or compound interest tools when money moves many times.
Is CAGR the same as IRR?
No. IRR finds a discount rate that zeros the NPV of many dated cash flows. CAGR here uses exactly two values and one elapsed time.
When should I use the TVM calculator instead?
Use TVM when you have a level payment stream and want PV, FV, PMT, rate, or N with spreadsheet PMT/PV/FV semantics. CAGR here is not an annuity engine.
How do I match this in Google Sheets or Excel?
With PV in A2, FV in B2, and years in C2: =(B2/A2)^(1/C2)-1 or =POWER(B2/A2,1/C2)-1, then format as percent. See the copy cards.
What if my ending value is below my beginning value?
You still get a negative CAGR when FV > 0 but FV < PV. If FV is zero, the ratio FV ÷ PV is zero and CAGR is not meaningful on this page—fix the ending value or use a different model.
How are years from dates computed?
We take the calendar difference between your UTC YYYY-MM-DD picks and divide by 365.25 days per year so long spans stay reasonable. For audit-grade day-count conventions, replicate your policy in a sheet.
Is a 20% or 30% CAGR good?
Good depends on risk, liquidity, industry, and time horizon. This tool gives a math summary, not a product rating or promise—compare definitions and data sources in your own work.
Is this investment, tax, or accounting advice?
No. It is a free educational calculator—not a fiduciary recommendation, not a filing position, and not a substitute for qualified professionals when decisions have money on the line.