Choose End value, Initial investment, CAGR or Number of years, then enter the three required values. The model uses a constant annual compound rate with no added deposits or withdrawals.

Model compound growth with one constant annual rate and no added deposits or withdrawals. Dollars use the original $ convention; this is a mathematical estimate.

Starting value before compound growth.

Use a negative rate for decline. Minimum −100% means total loss.

Fractional years are allowed. A zero-year period has no growth.

CAGR End Value Formula

The following equation is used to calculate the CAGR End Value.

EV = P (1 + r) ^ t
  • Where EV is the end value ($)
  • P is the principal (initial investment) ($)
  • r is the CAGR (in decimal form)
  • t is the time in years

To calculate the end value, multiply the initial investment by (1 + CAGR) raised to the power of the number of years.

What is a CAGR End Value?

Definition:

A CAGR End Value is the amount of money you have at the end of an investment period after applying a compound annual growth rate (CAGR) to the initial principal. It represents the modeled growth or decline over a set timeframe, excluding added deposits, withdrawals, fees and taxes.

How to Calculate a CAGR End Value?

Example Problem:

The following example outlines the steps and information needed to calculate the CAGR End Value.

First, determine the initial investment (P). In this example, the initial investment is $10,000.

Next, determine the CAGR (r). Let’s assume the annual growth rate is 8%, or 0.08 in decimal form.

Next, determine the investment period (t). Assume the investment is held for 5 years.

Finally, calculate the end value using the formula above:

EV = P (1 + r)^t

EV = $10,000 (1 + 0.08)^5

EV = $10,000 (1.08)^5 ≈ $14,693.28

FAQ

Why use CAGR instead of a simple average growth rate?

CAGR is the constant annual rate that links an initial value to an end value through compounding. A simple arithmetic average does not generally reproduce compounded growth. CAGR does not show year-to-year volatility and assumes no external cash flows in this calculator.

Can the CAGR End Value be negative?

A negative CAGR can reduce a positive end value, but does not make it negative in this model. Rates above −100% keep a positive investment value positive; −100% produces zero over a positive period. Negative investment values and rates below −100% are outside this calculator’s domain.

How does reinvesting affect the CAGR End Value?

Use a CAGR that consistently includes reinvested earnings if you want them reflected in the result. Do not add reinvested dividends again when they are already included in the rate. This calculator does not separately model deposits, withdrawals or dividend payments.