CAGR (Average Annual Growth Rate) Calculator

CAGR Calculator (Compound Annual Growth Rate)

A practical tool to measure the annual compound growth of an investment, project, or business metric. The CAGR represents the “equivalent” annual rate that, if applied consistently each year, grows the initial value (IV) to the final value (FV) over n years. It is ideal for comparing investments with different durations and for obtaining a clear, concise measure of long-term performance.

What you can calculate

• CAGR given IV, FV, and number of years.
• Final value (FV) given IV, years, and CAGR.
• Years required to reach a target FV given IV and CAGR.

The tool also displays total return and an estimate of the doubling time using the “Rule of 72,” when applicable.

Practical examples

Example 1 – Calculate the CAGR
IV = €10,000 — FV = €16,105 — n = 5 years
CAGR = (16,105 / 10,000)^(1/5) − 1 = +10.00% per year
This means a compound annual growth of 10% turns €10,000 into €16,105 in 5 years.

Example 2 – Find the Final Value
IV = €8,000 — n = 7 years — CAGR = 6%
FV = 8,000 × (1 + 0.06)^7 = €12,023.63 (approx.)
After 7 years at a 6% compound annual rate, the capital grows to about €12,024.

Example 3 – Estimate the Required Years
IV = €5,000 — FV = €10,000 — CAGR = 8%
n = ln(10,000 / 5,000) / ln(1.08) ≈ 9.01 years
At an 8% compound rate, it takes roughly 9 years to double the capital.