CAGR Calculator
Compound annual growth rate between a beginning and ending value.
Every calculation runs locally in your browser. Nothing you enter here is sent to a server or stored anywhere.
CAGR
13.99%
For informational and educational purposes only — not financial, investment, or tax advice, and not a substitute for consulting a qualified professional about your specific situation. TrueMeasureKit is not liable for decisions made based on these results. See our Terms of Service.
Why CAGR smooths out a bumpy ride
An investment rarely grows at a perfectly steady rate — it might jump 40% one year and drop 10% the next. CAGR answers a different, useful question: what single constant annual rate would have produced the same overall result, start to finish? That makes it the standard way to compare investments with wildly different year-to-year volatility on equal footing, even though no real investment actually grew at exactly that steady rate in any individual year.
Frequently asked questions
What's the difference between CAGR and average annual return?
A simple average of yearly returns can be misleading with volatile years (a +50% year and a −50% year average to 0%, but you actually lost money). CAGR calculates the single steady annual rate that would produce the same overall growth, which better reflects real performance.
When is CAGR not a good measure?
CAGR smooths out volatility along the way, so two investments with the same CAGR can have had very different (and very different risk) paths to get there. It tells you the destination, not the journey.