Formula
CAGR = (ending value ÷ starting value)1/years − 1. It shows the steady yearly rate that would turn the first value into the second.
Example
$10,000 that grows to $18,000 in 5 years has a CAGR of 12.47%. At that pace it doubles in about 5.9 years.
Frequently asked questions
Does CAGR show risk?
No. It smooths out the ups and downs along the way.
See also
Results are estimates for information only and are not financial, legal or medical advice. Rates, taxes and fees vary — confirm with a professional or your lender.