How is CAGR calculated?
CAGR is the constant annual compound rate that connects a beginning value to an ending value. It can describe investment returns or growth in comparable values.
CAGR = ((ending value / beginning value)^(1 / years) − 1) × 100%
Duration is years + months / 12. Cumulative return is (ending / beginning − 1) × 100%; value change is ending minus beginning.
A 33.1% gain over 3 years means 10% a year
For example, KRW 10,000,000 grows to KRW 13,310,000 in 3 years. Since 1,000 × 1.1 × 1.1 × 1.1 = 1,331, CAGR is 10%, cumulative return is 33.1%, and the gain is KRW 3,310,000.
This differs from dividing 33.1% by 3 to get 11.0333%. CAGR accounts for compounding across periods.
How to interpret the result
- What if I added or withdrew money?
- Your ending value includes cash flows as well as investment performance. This calculator cannot measure your personal return in that case; a cash-flow-aware calculation is needed.
- Can it calculate losses or a total loss?
- Yes. If 100 becomes 81 after 2 years, annualized return is −10% and cumulative return is −19%. If the ending value is zero, both are −100%. A zero beginning value or negative values are not supported.
- Does it include dividends, taxes, fees or exchange rates?
- These are not added or deducted separately. Results depend on what your two values include, and both must use the same currency. Simply adding interim cash dividends to the ending value does not establish an accurate total return.
- Does this mean the return was identical every year?
- No. Two values cannot show interim fluctuations or risk. Different return paths can have the same CAGR.
2026-10-28 · Added CAGR calculation with years/months, cumulative return and URL sharing.