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CAGR Calculator

Enter a starting value, an ending value and the years between them to get the steady yearly growth rate that links the two.

RM

The value at the start, for example what you invested.

RM

The value at the end, for example what it is worth now.

The time between the two values, in years. Use decimals for part years.

This result is an estimate only. Check with your bank or the relevant authority before making decisions.

How it is calculated

  • CAGR = (ending value ÷ starting value) ^ (1 ÷ years) − 1
  • Total growth = ending value ÷ starting value − 1
  • Multiple = ending value ÷ starting value

For a simple percentage gain with an optional yearly return, use the ROI calculator. To see what inflation does to money, use the inflation calculator.

Worked example

RM10,000 grows to RM20,000 in 5 years:

  • Multiple: 20,000 ÷ 10,000 = 2×, a total growth of 100%
  • CAGR: 2 ^ (1 ÷ 5) − 1 = 14.87% a year

Why your number may differ

CAGR assumes a smooth yearly rate. Real returns jump around, and money paid in or out along the way changes the result. It describes the past and does not predict the future.

Frequently asked questions

What is CAGR?

CAGR is the compound annual growth rate, the steady yearly rate that would take a value from its start to its end over the period. It smooths out ups and downs.

How is CAGR calculated?

CAGR = (ending value ÷ starting value) ^ (1 ÷ years) − 1. Doubling a value in 5 years is a CAGR of about 14.87%.

Can CAGR be negative?

Yes. If the ending value is below the start, the CAGR is negative, which means the value fell by that rate each year on average.

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