Enter the starting value, ending value, and period. SmartFin calculates the annualized growth rate that would connect the two values under a steady compounded rate.
The modeled CAGR is 20.11%. It connects $10,000 to $25,000 over 5 years.
Inputs: starting value $10,000, ending value $25,000, period 5 years.
Inputs changed: press Calculate to see the result.
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| Rate | 5% | 8% | 10% | 15% | Your 20.1% |
|---|---|---|---|---|---|
| Value | $12,763 | $14,693 | $16,105 | $20,114 | $25,000 |
CAGR compresses a multi-period change into one annualized number. Growing $10,000 at exactly 20.11% a year for 5 years gives $25,000, the ending value.
The period matters as much as the two values: the same move from $10,000 to $25,000 over 10 years instead is 9.60% a year.
It does not describe the path between the two values. It does not show volatility, drawdowns, or cash-flow timing.
When contributions or withdrawals happen during the period, a money-weighted measure such as IRR answers a different question. SmartFin’s Stock Returns Over Time reports IRR for monthly investing.
$10,000 growing to $25,000 over 5 years is a compound annual growth rate of 20.11%. The result uses the inputs shown and the method described on this page. It describes only the two end points, not the path between them. Reproduce the calculation here: https://smartfin.fyi/cagr-calculator.html?tabValueBtn=1&startValueA=10000&endValueA=25000&yearsA=5.
Yes. If the ending value is below the starting value over a positive period, the annualized growth rate is negative. For example, $25,000 falling to $10,000 over 5 years is -16.74% a year.
CAGR connects the start and end values with compounding. A simple average can hide the effect of gains and losses compounding over time.
CAGR = (ending value ÷ starting value)1 ÷ years − 1. Here: ($25,000 ÷ $10,000)1 ÷ 5 − 1 = 20.11%.