CAGR Calculator
Instantly calculate the Compound Annual Growth Rate of your investments, business revenue, or portfolio. Free, accurate financial tool for smart planning.
Calculate Your Compound Growth
Enter your starting value, ending value, and the time period to get an instant, mathematically precise CAGR percentage and growth breakdown.
Investment Details
Provide your financial metrics for an accurate annualized growth estimate
Growth Estimate
Calculated annualized performance breakdown
Historical Growth Benchmarks
Average annualized returns for common asset classes to help you benchmark your investment’s CAGR performance.
| Asset Class | Risk Profile | Historical Avg. CAGR | Typical Time Horizon |
|---|---|---|---|
| Global Equities (Stocks) | High | 7% – 10% | 10+ Years |
| UK FTSE 100 | Medium-High | 5% – 8% | 10+ Years |
| Corporate Bonds | Medium | 4% – 6% | 5+ Years |
| Government Gilts | Low | 2% – 4% | 3+ Years |
| High-Yield Savings | Very Low | 3% – 5% | 1+ Years |
CAGR Calculator FAQ
Everything you need to know about Compound Annual Growth Rate, financial calculations, and investment analysis.
CAGR stands for Compound Annual Growth Rate. It is the mean annual growth rate of an investment or business metric over a specified period of time longer than one year. It represents one of the most accurate ways to calculate and determine returns for individual assets, investment portfolios, and anything that can rise or fall in value over time.
CAGR is calculated using the formula: CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) – 1. For example, if an investment grows from £1,000 to £1,500 over 3 years, the CAGR is (1500 / 1000)^(1/3) – 1 = 0.1447, or 14.47%.
The average growth rate (arithmetic mean) simply adds up the annual growth rates and divides by the number of years, ignoring the effects of compounding. CAGR (geometric mean) accounts for compounding, providing a smoother, more accurate representation of an investment’s true annualized return over time.
CAGR assumes a constant growth rate over the entire period, smoothing out volatility. It does not reflect the risk, fluctuations, or intermediate values of the investment. It also relies entirely on the chosen start and end dates, which can be manipulated to show artificially high or low growth.