CAGR Calculator Widget

Add a CAGR calculator for investing and business readers. They enter a starting value, an ending value and the number of years and get the steady yearly growth rate, the total return and the path between the two.

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<iframe src="https://a2z.tools/embed/w/cagr-calculator" title="CAGR Calculator by A2Z Tools" width="100%" height="730" style="border:0;width:100%" loading="lazy" allow="clipboard-write"></iframe>

A plain iframe. Works everywhere, including site builders that strip scripts. Adjust height if your content needs more room.

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How it works

The widget uses the same CAGR engine as the A2Z CAGR Calculator. CAGR is the constant yearly rate that turns the starting value into the ending value over the period - a geometric mean of the yearly growth factors. It also shows the growth multiple and the simple average (total return divided by years), which always overstates growth for gains, and a table of the value along the smoothed CAGR path. Only the two end points are used, so a volatile path and a steady one with the same ends give the same CAGR.

Calculation method

  • CAGR = (end / start)^(1 / years) - 1
  • Total return = end / start - 1; growth multiple = end / start
  • Value after k years on the path = start x (1 + CAGR)^k
  • Rounding: percentages shown to 2 decimals

Worked examples

An investment that doubles

Inputs: 10,000 growing to 20,000 over 5 years

Result: CAGR 14.87%; total return 100%; simple average 20% a year

1.1487 raised to the 5th power is 2.

A property held 6.5 years

Inputs: 250,000 to 400,000 over 6.5 years

Result: CAGR 7.5%; total return 60%; growth multiple 1.6x

Buying costs, rent received and maintenance are not included.

A two-year fall

Inputs: 1,000 to 810 over 2 years

Result: CAGR -10%; total return -19%

0.9 x 0.9 = 0.81.

Limitations

  • Uses only the start and end values; ignores volatility and interim cash flows.
  • Years can be fractional, but dates are not counted - enter the period in years.
  • Dividends, rent or coupons are only included if they are already inside the ending value.

Where publishers use it

  • Stock and fund reviews summarising multi-year performance
  • Company and startup pages reporting revenue or user growth
  • Property blogs comparing house-price growth between cities
  • Business-studies lessons on growth rates
  • Investor-pitch decks and annual-report explainers summarising revenue or subscriber growth

Questions

Why is CAGR lower than the average yearly return?

The simple average ignores compounding. Doubling in 5 years is 20% a year on a simple average but only 14.87% compounded.

Can CAGR be negative?

Yes - an investment that falls from 1,000 to 810 over 2 years has a CAGR of -10%, while its simple average is -9.5% a year.

What if the starting value is zero?

CAGR is undefined from zero or from a negative value, and the widget says so rather than showing a number.

Should I use CAGR for a SIP or several deposits?

No. CAGR assumes a single starting amount; with money added over time, an XIRR or IRR calculation is the right measure.

Can the period be a fraction of a year?

Yes. A flat bought for 250,000 and sold for 400,000 six and a half years later has a CAGR of 7.5% a year; the simple average would claim 9.23%.

I have revenue for five fiscal years - how many years do I enter?

Four. Five year-end figures span four growth periods, so FY1 to FY5 is 4 years. Entering 5 is a common fencepost error that understates the growth rate.

Why is CAGR called a smoothed rate?

It replaces an uneven path with one constant rate. A fund that rises 50% and then falls 20% ends 20% up over two years, a CAGR of 9.54%, even though neither year looked like that.

Cite or recommend this tool

If you reference this tool in an article, course or documentation, these formats are ready to copy. They are optional - nothing is added to your site unless you paste it.

A2Z Tools CAGR Calculator
https://a2z.tools/cagr-calculator

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