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CAGR Calculator - Online Compound Annual Growth Rate

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CAGR Calculator

Compute compound annual growth rate, future value, present value, or investment duration instantly

$
Please enter a valid present value.
$
Please enter a valid future value.
%
Please enter a CAGR between 0 and 100.
Number of years must be positive.
Result
CAGR
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Absolute Growth
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Total Return
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Frequently Asked Questions

CAGR is the mean annual growth rate of an investment over a specified time period longer than one year. It represents one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time. Unlike simple averages, CAGR smooths out the effect of volatility of periodic returns.

The formula is:
CAGR = (FV / PV)1/n - 1
Where FV = Future Value, PV = Present Value, n = Number of years.
You can also rearrange the formula to find FV, PV, or n depending on what you need.

Average annual return (arithmetic mean) simply adds yearly returns and divides by the number of years. It ignores compounding and can be misleading when returns fluctuate. CAGR, on the other hand, provides a smoothed annual rate that reflects the actual compound growth path, making it a more accurate measure of performance over multiple periods.

Yes, CAGR can be negative if the final value is less than the initial value. This indicates a loss over the period. Our calculator supports negative input for present/future values to compute negative CAGR or necessary decline.

Our calculator uses high-precision JavaScript and rounds results to two decimal places. However, the calculation assumes a constant growth rate over the period; real-world investments rarely grow at a perfectly constant rate. CAGR is a simplification that gives the equivalent constant rate.
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