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CAGR & XIRR Calculator

Use CAGR mode to find the steady yearly growth rate that turns a starting value into an ending value over a number of years. Use XIRR mode when money went in and out on different dates: enter each dated cash flow and the calculator finds the annual return that makes them balance. $10,000 growing to $18,000 in 5 years is a CAGR of 12.47%.

Your numbers

Results

CAGR (per year)

12.47%

Total growth
80%
Show the working
  1. CAGR($18,000.00 ÷ $10,000.00)^(1 ÷ 5) − 1 = 12.47%
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How to use the CAGR and XIRR calculator

CAGR mode

  1. Choose CAGR.
  2. Enter the starting value, ending value and number of years.
  3. Read the annual growth rate and total growth.

XIRR mode

  1. Choose XIRR.
  2. Add a row for each cash flow with its date and amount: deposits negative, withdrawals and the final value positive.
  3. Read the annual return.

Formulas

  • CAGR = (end ÷ start)^(1 ÷ years) − 1.
  • XIRR solves Σ amount ÷ (1 + rate)^(days ÷ 365) = 0, where days is the time since the first cash flow. The calculator uses Newton’s method with a bisection fallback so it converges reliably.

Worked examples

CAGR. $10,000 grows to $18,000 in 5 years. CAGR = 1.8^(1/5) − 1 = 12.47% a year. Total growth is 80%.

XIRR. You invest $10,000 on 15 January 2023 and another $2,000 on 15 January 2024, and the investment is worth $15,000 on 30 June 2025. The XIRR is about 10.2% a year. A simple CAGR from $10,000 to $15,000 would overstate the return because it ignores the extra $2,000.

How to use the results

CAGR is useful for comparing growth across investments, businesses or prices over the same period. XIRR is the right measure for your own portfolio when you add money regularly. Both are backward-looking: they describe what happened, not what will happen.

Tips and common mistakes

  • Use the same period when comparing investments.
  • Include fees and dividends in the values for a true return.
  • Don’t annualise very short periods; a few months of gains can produce misleading yearly rates.
  • Check the signs in XIRR mode; at least one negative and one positive amount are needed.
  • Compare with inflation to see the real return.

CAGR versus total return

Total return answers “how much did it grow?” and CAGR answers “how fast, per year?”. An 80% total return sounds better over 5 years than over 15. Converting to CAGR (12.47% versus about 4% a year) makes periods of different lengths comparable.

Limitations

CAGR smooths out volatility and says nothing about the path in between. XIRR can have more than one solution for unusual cash-flow patterns; the calculator reports the one it finds nearest a normal return.

Frequently asked questions

What is CAGR?

The compound annual growth rate: the constant yearly rate that would take a starting value to an ending value over a period. CAGR = (end ÷ start)^(1 ÷ years) − 1.

What is XIRR?

The internal rate of return for cash flows on irregular dates. It finds the yearly rate at which the present value of all deposits (negative) and withdrawals or final value (positive) is zero.

When should I use XIRR instead of CAGR?

When you added or withdrew money during the period. CAGR only looks at the start and end values, so it would count your deposits as growth.

Why is CAGR different from the average yearly return?

An average of yearly returns ignores compounding. A gain of 50% followed by a loss of 50% averages 0% but leaves you with 25% less; CAGR shows the real result.

How do I enter cash flows for XIRR?

Enter money you put in as negative amounts and money you took out, or the current value on the final date, as positive amounts, each with its date.

Sources