Example inputs are editable assumptions, not a published portfolio result.
Enter comparable endpoints
Enter the starting and ending values of the same investment and the elapsed time in years. A half-year period is 0.5 years. The output is an annualized rate, so it can differ substantially from the total gain over a short period.
Worked example: 20% annualized growth
A starting value of $10,000 growing to $14,400 over two years has a 44% total gain and a 20% CAGR. Compounding $10,000 by 20% twice produces $14,400. This example assumes no deposits or withdrawals.
Compound annual growth formula
CAGR = ((ending value / starting value)^(1 / years) − 1) × 100. It is the constant annualized rate connecting the two endpoints. It does not describe the path between them.
The starting value and elapsed years must be positive. Ending value can be zero, producing −100% CAGR. Negative ending equity does not have a real-valued CAGR under this formula.
When CAGR is meaningful
Use endpoints that represent the same invested capital with no external deposits or withdrawals. When cash flows occur, use a cash-flow-aware money-weighted or time-weighted analysis instead of treating added cash as investment growth.
Two portfolios can have identical CAGR but different drawdowns and volatility. Compare CAGR with risk and observation duration. This calculator excludes taxes, fees not already reflected in the endpoints and any forecast of future performance.