Compound annual growth rate
Find the constant annual growth rate linking starting and ending values.
How this works
Compound annual growth rate = [(ending value/starting value)^(1/t) − 1] × 100%, where t is years. Both values and the time period must be positive. This is the constant annual compounded rate that mathematically connects the two endpoints.
Example
The illustration may use different inputs from the reproducible default inputs listed below.
At the defaults, calculate [(15,000/10,000)^(1/5) − 1] × 100. With all reset-default inputs, annualized growth rate: 8.4472%.
- Starting value ($)
- 10000
- Ending value ($)
- 15000
- Years
- 5
- Annualized growth rate
- 8.4472%
Scope and assumptions
Assumes no intermediate deposits or withdrawals. It does not describe the actual year-by-year path, volatility, timing of income, fees or taxes. A past endpoint-based growth rate is not a prediction of future performance.
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