Compound Annual Growth Rate
Enter years directly, or use the date fields on the right.
If set, we compute years from dates (~ACT/365.25). Clear both to edit “Years”.
Used to compute a “real” CAGR (inflation-adjusted).
Results
Annualized geometric growth rate.
Overall change from beginning to end.
Uses (1+nominal)/(1+inflation) − 1.
Exact = ln(2) / ln(1+CAGR). Rule-of-72 is a quick estimate.
CAGR uses (End/Begin)^(1/Years) − 1 and is widely used to compare investments across time. Real CAGR adjusts for inflation with a Fisher-style relation. See overview, Fisher equation, and Rule of 72.
If Begin=10,000, End=12,100 over 2 years: CAGR = (12,100/10,000)^(1/2) − 1 ≈ 10%. If inflation is 4%/yr, Real CAGR ≈ (1.10/1.04) − 1 ≈ 5.77%. At 10% CAGR, doubling time is ~7.27 years (Rule-of-72 ≈ 7.2 years).
- CAGR is a geometric average; arithmetic averages can overstate performance when returns are volatile. (Geometric ≤ arithmetic; difference grows with variance.)
- Year count uses an ACT/365.25 approximation when dates are provided; day-count conventions can vary by context.
- For cash flows between begin/end, use IRR/XIRR instead of CAGR.