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CAGR Calculator

Turn a starting and final value into a single annual growth rate, see the real return after inflation, and compare it with a benchmark rate.

Written by the CalcTortoise editorial team · How we work

years

Part-years are fine, e.g. 3.5 for three and a half years.

Assumed: 3% inflation, compared with 4%. Change

Used to work out your return after rising prices.

For example a deposit rate, to see whether your investment did better.

CAGR

8.76%

Total gain
$8,000
Absolute return
80%
Money multiplied
1.8×
CAGR after 3% inflation
5.59%
Value at 4% a year
$13,159

Illustration only, not investment, tax or legal advice.

Your investment did $4,841 better than 4% a year.

Your investment against 4% a yearYour investmentAt 4% a year

Year-by-year value at this CAGR

YearValue at this CAGRGainAt 4% a year
Year 1$10,876$876$10,400
Year 2$11,829$1,829$10,816
Year 3$12,865$2,865$11,249
Year 4$13,992$3,992$11,699
Year 5$15,217$5,217$12,167
Year 6$16,550$6,550$12,653
Year 7$18,000$8,000$13,159

How to use this calculator

  1. Enter the starting and final value of the investment.
  2. Enter how long it was held, in years.
  3. Add inflation and a benchmark rate to put the result in context.

Frequently asked questions

What is CAGR?

The compound annual growth rate: the constant yearly rate that would take an investment from its starting value to its final value over the period.

How is CAGR different from absolute return?

Absolute return ignores time. $10,000 becoming $18,000 is 80% in total, or a CAGR of 8.76% a year over 7 years.

What is real CAGR?

Growth after inflation: 8.76% a year with 3% inflation is 5.59% in real terms.

Can I use CAGR for regular investments?

Not on its own. CAGR assumes one investment at the start; for money added at different dates, an internal rate of return (XIRR) is the right measure.

Sources and method

Standard compound-interest formulas, tested against worked examples. Nothing here depends on outside data; the rates you type in are your own assumptions.

No outside data is used. The numbers you type in are the only inputs.

Page and formula last reviewed . How we calculate · Editorial policy · Corrections and change log

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Last updated 9 October 2026. For information only — not financial advice. Check the final figures with your lender or bank.