Aurora Finance
Calculator

CAGR calculator

CAGR is the smoothed annual return that would take a starting value to an ending value over a set number of years — the standard way to compare investments over different periods.

Updated July 2026
$
$
CAGR
12.14%
Compound annual growth rate
Total return
150.0%

How it works

CAGR = (End / Start)^(1/years) − 1
  • Enter the beginning value, ending value, and number of years.
  • The calculator returns the annualised growth rate that connects the two.

Worked examples

  • $10,000 grew to $18,000 in 6 years → CAGR ≈ 10.2%.
  • $1,000 grew to $2,000 in 7 years → CAGR ≈ 10.4% (Rule of 72 estimate: 72/7 = 10.3%).

Frequently asked questions

Is CAGR the same as average return?

No. Simple average ignores compounding. CAGR captures the geometric return, which is what an investor actually experiences.

Can CAGR be negative?

Yes. If end value is lower than start, CAGR is negative — a smoothed annualised loss.

Related

CAGR (glossary)
Full definition.
ROI calculator
Total return vs annualised.
Educational information only. Not personalised financial advice. Consult a qualified professional for decisions specific to your situation.