CAGR Calculator
Updated on 22 Oct 2026 · Checked by Aotob
Growing from $10,000 to $18,000 in 5 years is 12.47% a year.
That is 80% in total.
Compound annual growth
12.47%a year
The simple average (16%) overstates growth; CAGR is the steady yearly rate that gives the same end value.
Show the working
CAGR = (18,000 ÷ 10,000)1/5 − 1 = 12.475%
The steady path
| Year | Value |
|---|---|
| 1 | 11,247 |
| 2 | 12,651 |
| 3 | 14,229 |
| 4 | 16,004 |
| 5 | 18,000 |
Questions people ask
What is CAGR?
The single yearly growth rate that takes the start value to the end value over the period, as if it grew smoothly. (End ÷ start)^(1 ÷ years) − 1.
How is it different from average return?
A plain average of yearly returns overstates growth when returns swing. CAGR is the rate you actually got, compounded.
Does CAGR include money added?
No. It suits a single amount. If you added or took out money along the way, use an internal rate of return (IRR) instead.
Updated 22 Oct 2026Source: Standard financial maths (time value of money)Checked by AotobNot financial advice.Report an issue