TradingCalculated
Calculations run privately in your browser
Trading Metrics app

CAGR Calculator (Compound Annual Growth Rate)

Calculate the compound annual growth rate between two values over any number of years, months or days — plus the equivalent monthly rate (CMGR) and doubling time.

Performance & ReturnsBeginner
Your inputs
Quick examples
$
$
Results
CAGR+10%compound annual growth over 5 years
Monthly equivalent (CMGR)+0.797%compounded each month
Total return+61.05%
Growth multiple1.611×
Years to double7.3at this CAGR
Simple average / year+12.21%overstates growth
CAGR is the single constant rate that turns $10,000.00 into $16,105.00 over 5 years. The real path was almost certainly bumpier — CAGR hides volatility and drawdowns, so read it next to max drawdown.
Smoothed growth path at the CAGR

Not financial advice. Results are estimates based on the values you enter and simplified assumptions; real trades are affected by fees, slippage, gaps and other factors. Trading involves substantial risk of loss. Read the full disclaimer.

How to calculate CAGR

CAGR = (Ending value ÷ Beginning value)^(1 ÷ years) − 1 CMGR = (Ending value ÷ Beginning value)^(1 ÷ months) − 1

Durations in months are divided by 12 and in days by 365.25 to get years.

Worked example

  1. $10,000 grows to $16,105 over 5 years.
  2. CAGR = (16,105 ÷ 10,000)^(1/5) − 1 = 1.6105^0.2 − 1 = 10.0% per year.
  3. Doubling $10,000 in 5 years is a 14.87% CAGR; a 5× gain over 10 years is 17.46%.

How to interpret CAGR

CAGR is the single constant rate that links the start and end values. It is ideal for comparing investments over different periods, but it describes a smooth path that never happened. Two strategies with the same 12% CAGR can have completely different journeys — one with a 10% drawdown, another with 50%.

Always read CAGR next to maximum drawdown and volatility. For projecting future growth trade by trade, use the compound growth calculator.

Limitations and common mistakes

  • The simple average annual return (total ÷ years) is always higher than CAGR when returns compound — don't mix the two.
  • Cash added or withdrawn distorts CAGR; use money-weighted or time-weighted returns for accounts with cash flows.
  • CAGR over very short periods extrapolates aggressively and is rarely meaningful.
Performance & Returns

Annualized Return Calculator

Convert a return earned over any holding period into its equivalent yearly rate.

+18% over 540 days → 11.84% / year
Performance & Returns

Total Return Calculator

Calculate the full return on an investment or trade, including dividends, interest and other income.

$16,556.66 → $23,739.17 → +43.38%
Performance & Returns

Compound Growth Calculator

Model how repeated gains, losses, risk per trade and deposits shape your equity curve over time.

$1,000 · +1% × 10 trades → $1,104.62

Learn the concepts

Guide · 8 min read

Compound Growth in Trading: Why Drawdowns Hurt More

Arithmetic vs geometric returns, volatility drag, the asymmetry of losses and what realistic compounding looks like.

Read the guide

CAGR calculator FAQ

What is a good CAGR?

Broad equity indices have historically compounded at high single digits per year over long periods. Compare any CAGR with the risk and drawdowns taken to achieve it.

What's the difference between CAGR and annualized return?

They use the same maths. CAGR is usually quoted between two values over several years; annualised return converts any period's return into a yearly rate.

Can CAGR be negative?

Yes. If the ending value is below the beginning value, CAGR is negative — the constant yearly rate of decline.