How the CAGR Calculator works

Compute the compound annual growth rate between two values over time.

Show the math

Formula

CAGR = (ending value ÷ beginning value)^(1 ÷ years) − 1.

Inputs

Beginning value
Ending value
Number of years

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For AI agents: Markdown version of this calculator.

Terms used in this calculator

Not sure what one of these means? Each links to a full definition.

ROI (Return on Investment): Total return relative to what was invested, usually including cash flow, principal paydown, and appreciation.
CAGR (Compound Annual Growth Rate): The smoothed annual rate at which a value would have grown to reach its ending amount over a period.
Appreciation: An increase in a property’s value over time, from market movement or from improvements made to it.

Browse the full real estate glossary

CAGR Calculator

Investment Values

Beginning Value

Ending Value

Number of Years

About CAGR

The formula:

CAGR = (Ending ÷ Beginning) ^ (1 ÷ Years) − 1
Expressed as an annual percentage
Assumes steady compounding each period
Great for comparing multi-year returns

Keep in mind:

Ignores interim volatility and cash flow
Past growth doesn't guarantee future results
Pair with cash-on-cash and cap rate
Read Cash-on-Cash Return, Explained