# CAGR Calculator

> Calculate the compound annual growth rate (CAGR) from a starting value, an ending value, and a time horizon in years. Also returns the total return and growth multiple. No contributions assumed.

**URL:** https://www.calculatoranswers.com/cagr-calculator
**Category:** Money

## Quick Answer

Calculate the compound annual growth rate (CAGR) of an investment. Enter the starting value, ending value, and time period to find the annual rate.

## Definition

A CAGR calculator (Compound Annual Growth Rate) is a financial utility that measures the annual growth rate of an investment over a specified period, assuming it grew at a steady rate. The calculator applies the algebraic formula CAGR equals the ending value divided by the starting value, raised to the power of one over the number of years, minus one. This metric smooths out volatile annual returns to facilitate direct comparison. Investors and analysts use this tool to evaluate mutual funds, stock portfolios, and business growth.

## How to Use

1. **Enter initial value** — Type the starting value of the investment or portfolio.
2. **Enter final value** — Input the ending value of the investment at the end of the period.
3. **Set the time period** — Select the number of years between the initial and final values.

## Disclaimer

This calculator provides estimates for educational and planning purposes. Always consult a qualified professional for specific advice on financial, medical, legal, or other regulated decisions.

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