Starting valueHigh modeled impact
Higher input lowers the modeled result
The starting value sets the comparison base.
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CAGR Calculator
Calculate the compound annual growth rate between a starting and ending value.
Your result
Compound annual growth rate
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Total return—
Annualized interpretation—
Through the Lens
What drives this result?
Controlled, deterministic sensitivity around your current inputs reveals which assumptions move the annualized growth rate most.
Ending valueHigh modeled impact
Higher input raises the modeled result
A higher ending value increases the annualized rate.
Time periodHigh modeled impact
Higher input lowers the modeled result
More years spread the same total change across a longer period.
High modeled impact means an input changes this output substantially around the current scenario. Rankings compare controlled 10% input changes; they do not measure risk, probability, personal importance, controllability, suitability, advice, or forecasts.
Meaning
What this means
Meaning
CAGR smooths a multi-year change into one constant annualized rate. It is useful for comparison, but it does not show volatility or the path taken.
Implication
CAGR makes periods of different lengths easier to compare, but two investments with the same CAGR can have very different volatility and cash-flow histories.
Formula and methodology
How the calculator works
CAGR
(ending value ÷ starting value)^(1 ÷ years) − 1Total return
(ending value ÷ starting value − 1) × 100The engine assumes no intermediate cash flows and permits fractional years. Rates are calculated at full precision and displayed to two decimals.
Assumptions and limitations
What the scenario includes—and leaves out
Assumptions
- Starting and ending values use the same currency and valuation basis.
- The entered period accurately represents the time between the two values.
- No contributions, withdrawals, or distributions occur between the endpoints.
Limitations
- CAGR smooths the entire period into one annualized rate and hides volatility.
- Taxes, fees, inflation, and risk are not separately modeled.
- CAGR is a historical or scenario measure, not a forecast.
Educational scenario only. Results are modeled estimates, not forecasts or personalized financial, investment, legal, or tax advice.
Known-answer checks
Examples used to validate the engine
Doubling10,000 growing to 20,000 over 10 years returns about 7.18% CAGR.
No changeEqual starting and ending values return 0% CAGR.
Complete declineA positive starting value ending at 0 returns −100% CAGR.
Invalid periodA zero or negative period and non-positive starting value are rejected.
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