OraConvert two endpoints into one annual rate
For positive beginning value B, nonnegative ending value E and duration t > 0 years, CAGR = (E/B)1/t − 1. A smaller positive ending value produces a negative growth rate; equal values produce zero. An ending value of zero represents a complete loss and gives −100%.
This solves the compound-growth relationship B × (1 + rate)t = E. Microsoft: equivalent growth rate describes an equivalent-period growth-rate calculation. Use years as the period to make the result annual.
From 10,000.00 to 15,000.00
Over five years, CAGR = (15,000 ÷ 10,000)1/5 − 1 = 8.447177…% annually, or about 8.45%.
The overall increase is 50%, but 50% ÷ 5 = 10% is not the compound annual rate. At 10% compounded for five years, 10,000.00 would reach 16,105.10, not 15,000.00.
Added money changes the question
If you contribute or withdraw money between the two endpoints, this simple CAGR does not isolate investment performance. A balance that rises because of new deposits can produce a positive endpoint CAGR even if the investments lost money.
Use a method that explicitly accounts for the dates and amounts of cash flows when evaluating personal investment returns. Do not compare a contribution-heavy balance CAGR with a fund's return series.
Use the percentage-change calculator when you want the overall endpoint change without annualizing it. For comparisons involving prices, the real-return explanation shows why nominal endpoint growth is a different measure from purchasing power.
CAGR hides the journey
Two investments can share the same beginning, ending value and CAGR while having very different year-to-year paths. The number alone does not describe volatility, liquidity, fees or the likelihood of repeating the return. Investor.gov: investment and inflation risk provides context on investment risk.
Common questions
Can CAGR be negative?
Yes, when both endpoint values are positive and the ending value is smaller. It describes compound decline over the selected duration.
Can I enter zero as the beginning value?
No. The ratio would be undefined. The beginning value must be positive; an ending value of zero is allowed and represents a complete loss.
Does CAGR include deposits and withdrawals?
It uses only the two endpoints. It cannot separate growth from interim cash flows.
Educational estimate using the stated assumptions. Fees, taxes, changing rates and individual circumstances can change an outcome. This is not personalized financial advice. Read the estimates disclaimer.