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CAGR Calculator

Computes the compound annual growth rate that turns a beginning value into an ending value over a number of years, together with the total return and growth multiple.

When to use

You need a smoothed per-year growth rate for revenue, a portfolio, a population or any quantity measured at two points in time.

Do not use when: You need to account for interim deposits or withdrawals (CAGR ignores cash flows; use a money-weighted return), or the period is under a year.

Formula

CAGR = ((ending_value / beginning_value)^(1 / years) − 1) × 100

CAGR is the constant annual rate that would produce the same end value with annual compounding; it smooths out volatility and says nothing about the path in between.

Inputs

Parameter	Type	Unit	Required	Description
`beginning_value`	number		yes	Value at the start of the period. Range: > 0, ≤ 1000000000000000
`ending_value`	number		yes	Value at the end of the period. Range: > 0, ≤ 1000000000000000
`years`	number	years	yes	Length of the period in years; fractional values allowed (18 months = 1.5). Range: > 0, ≤ 200

Outputs

Output	Type	Unit	Description
`cagr_percent`	number	%	((ending / beginning)^(1/years) − 1) × 100.
`total_return_percent`	number	%	(ending / beginning − 1) × 100 over the whole period.
`growth_multiple`	number		ending_value / beginning_value.
`simple_average_annual_return_percent`	number	%	total_return_percent / years, the arithmetic (non-compounded) average for comparison.

Example

10,000 to 19,000 over 3 years: {"beginning_value":10000,"ending_value":19000,"years":3} → {"cagr_percent":23.86,"total_return_percent":90,"growth_multiple":1.9,"simple_average_annual_return_percent":30}

100 to 50 over 2 years: {"beginning_value":100,"ending_value":50,"years":2} → {"cagr_percent":-29.29,"total_return_percent":-50,"growth_multiple":0.5}

GET https://tttkmbb.com/api/v1/calculate/cagr?beginning_value=10000&ending_value=19000&years=3

Machine access

API: GET https://tttkmbb.com/api/v1/calculate/cagr (query parameters) or POST with a JSON body {"inputs": {...}}
Schema: https://tttkmbb.com/api/v1/calculators/cagr · Markdown: https://tttkmbb.com/finance/cagr.md · JSON definition: https://tttkmbb.com/finance/cagr.json
MCP: server https://tttkmbb.com/mcp, tool run_calculator with calculator_id="cagr"
OpenAPI operationId: calculate_cagr
Freshness: static. Authentication: none. Rate limit: fair use (see rate limits).

Sources

Investopedia – Compound Annual Growth Rate (CAGR) Formula and Calculation (reference)
Wikipedia – Compound annual growth rate (reference)

FAQ

How is CAGR different from average annual return?

The arithmetic average ignores compounding. Growing 10,000 to 19,000 in 3 years is 30 % per year on average but only 23.86 % CAGR, because each year's growth builds on the previous one.

How do I count the years?

Use the elapsed time between the two measurements, not the number of data points: values at the ends of 2020 and 2023 span 3 years.

Related calculators

ROI Calculator — Total and annualized return on an investment.
Rule of 72 Calculator — How long this growth rate takes to double the value.