CAGR Calculator

Compound annual growth rate between any two values, with absolute return and doubling time.

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Inputs

Formula

  • CAGR = [(Final / Initial)^(1/t) − 1] × 100
  • Absolute return = (Final − Initial) / Initial × 100
  • Doubling time = ln 2 / ln(1 + CAGR)

CAGR is the constant annual rate that would take the initial value to the final value over the period — a smoothed geometric mean that removes the noise of year-to-year swings. It is the only fair way to compare investments of different durations, and it is always lower than the arithmetic average of annual returns whenever returns are volatile.

Step-by-step calculation

  1. 1

    Growth ratio

    250,000 / 100,000

    2.5000

  2. 2

    Annualised

    ratio^(1/5) − 1

    20.11%

  3. 3

    Absolute return

    (250,000 − 100,000) / 100,000

    150.0%

Assumptions

  • No intermediate cashflows — use XIRR if money was added or withdrawn
  • Values are net of costs

Tips

  • For SIPs and irregular cashflows, CAGR is wrong — use XIRR.
  • Compare CAGR against a benchmark index over the identical period.

Warnings

  • CAGR hides volatility: two assets with the same CAGR can have very different drawdowns.

Standards & references

  • Geometric mean return
  • GIPS performance presentation principles

Frequently asked questions

What does the CAGR Calculator do?

Compound annual growth rate between any two values, with absolute return and doubling time. The CAGR Calculator on OneCalcApp returns the result instantly as you type, together with the formula and the substituted values.

How do I use the CAGR Calculator?

Enter your values in the input fields, choose the relevant units or options, and the CAGR Calculator recalculates automatically. You can copy, print or export the result.

Is the CAGR Calculator free to use?

Yes. The CAGR Calculator is completely free, needs no sign-up and has no usage limit on OneCalcApp.

How accurate is the CAGR Calculator?

It uses the standard formula CAGR = [(Final / Initial)^(1/t) − 1] × 100 and full double-precision arithmetic, so results match a manual calculation to the displayed number of digits.

Does the CAGR Calculator work on mobile and offline?

Yes. The CAGR Calculator runs entirely in your browser on phones, tablets and desktops, and your inputs never leave your device.

Where can I find related tools?

OneCalcApp hosts 300+ calculators and converters, including the full Finance collection. Related tools are linked at the bottom of every page.

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