Find the constant annual growth rate connecting a positive beginning value to an ending value across a chosen number of years.
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1e-8 – 1,000,000,000,000 currency units
0 – 1,000,000,000,000 currency units
0.000001 – 1000 years
Compound annual growth rate
8.45%
A constant annual rate connecting endpoints, not a history of yearly returns. Deposits and withdrawals distort this calculation; use cash-flow methods for investments with additional flows.
CAGR = [(ending value/beginning value)^(1/years) − 1] × 100.
A value rising from 100 to 121 in two years has CAGR 10%, because 100 × 1.1² = 121.
Step by step: the growth ratio is 121 ÷ 100 = 1.21; its square root (the 1/2 power for two years) is 1.1; subtracting 1 gives 0.10, or 10% a year.
Not by itself. Extra cash flows change the endpoint without representing investment return. Use IRR or another cash-flow-aware method.
Last updated . Results are estimates for informational purposes only.