CAGR Calculator
Compound annual growth rate — smooth an investment's return over multiple years.
Long-term investing philosophy
Amazon affiliateAs an Amazon Associate we may earn from qualifying purchases. This does not add cost for you.
What this measures
CAGR (Compound Annual Growth Rate) tells you the equivalent smooth annual return that would take a starting value to an ending value over a given period. It ignores the volatility along the way and expresses the compounded rate — the number most investors quote when they say a fund 'returned X% per year'.
Formula & example
CAGR = (End ÷ Start)^(1/years) − 1. If $10,000 grows to $16,105 over 5 years, CAGR = (16105/10000)^(1/5) − 1 = 10.00% per year. This is the geometric mean, not the arithmetic mean, and matches how compound interest actually works.
More free tools on ScoutMyTool
Other free tool clusters worth a look — all browser-based, no signup, no ads on your workflow.