Edit the assumptions to see how the result changes. These example values are hypothetical.
Try the example, then change one input
Separate total growth from annual growth
Select 20% annualized example below: $10,000 starting value, $14,400 ending value, two years and no external cash flows.
- Start assumption
- $10,000
- End assumption
- $14,400
- Two-year CAGR
- 20%
The total gain is 44%. Two years of 20% compounding gives $10,000 × 1.2 × 1.2 = $14,400.
Change one assumption
Keep those endpoints and select One-year window. The annualized rate becomes 44%, because the same change occurred in half the time.
Use the calculator aboveCAGR links endpoints. It does not show the intervening drawdown, and deposits cannot be counted as investment gains.
Continue with your own portfolio
Open the example in Aurora, review the request and choose the portfolio or result you want to inspect. The request carries the assumptions and the evidence checks with it.
An editable draft opens. You choose when to send it; opening the draft does not run a test, publish a portfolio or place an order.
Enter comparable endpoints
Enter the starting and ending values of the same investment and the elapsed time in years. A half-year period is 0.5 years. The output is an annualized rate, so it can differ substantially from the total gain over a short period.
Worked example: 20% annualized growth
Inspect the worked arithmetic
A starting value of $10,000 growing to $14,400 over two years has a 44% total gain and a 20% CAGR. Compounding $10,000 by 20% twice produces $14,400. This example assumes no deposits or withdrawals.
Compound annual growth formula
Compound annual growth formula
CAGR = ((ending value / starting value)^(1 / years) − 1) × 100. It is the constant annualized rate connecting the two endpoints. It does not describe the path between them.
The starting value and elapsed years must be positive. Ending value can be zero, producing −100% CAGR. Negative ending equity does not have a real-valued CAGR under this formula.
When CAGR is meaningful
When CAGR is meaningful
Use endpoints that represent the same invested capital with no external deposits or withdrawals. When cash flows occur, use a cash-flow-aware money-weighted or time-weighted analysis instead of treating added cash as investment growth.
Two portfolios can have identical CAGR but different drawdowns and volatility. Compare CAGR with risk and observation duration. This calculator excludes taxes, fees not already reflected in the endpoints and any forecast of future performance.
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