Advertisement

Work out the compound annual growth rate between a beginning and ending value, or solve for the final value or the years needed. Free and instant.

$
$
years
%
CAGR per year
Total growth
Growth multiple
Absolute gain
CAGR = (end ÷ begin)^(1 ÷ years) − 1 — the constant yearly rate that turns the beginning value into the ending value. It smooths out volatility, so the actual path between the two points may have varied widely.
Advertisement

About CAGR Calculator

The CAGR Calculator works out the compound annual growth rate between a beginning value and an ending value — the single constant yearly rate that would have taken you from one to the other. It is the standard way to compare investments, revenue lines or user counts whose year-to-year paths look nothing alike.

The formula is CAGR = (ending ÷ beginning)^(1 ÷ years) − 1. Because it smooths out every peak and dip in between, a CAGR of 12% does not mean any single year returned 12%; it means the compounded result matches what a steady 12% would have produced.

The tool also runs in reverse. Solve for the final value from a rate and a number of years, or solve for how many years a given rate needs to reach a target — useful for goal setting and for sanity-checking growth claims. Alongside the rate it reports total growth, the growth multiple and the absolute gain.

How to use CAGR Calculator

  1. Choose what to solve for: the growth rate, the final value, or the years needed.
  2. Enter the beginning value.
  3. Enter the ending or target value, or the growth rate, depending on the mode.
  4. Enter the number of years, if the mode asks for it.
  5. Read the CAGR alongside total growth, the growth multiple and the absolute gain.

Frequently asked questions

Compound annual growth rate is the constant yearly rate that would turn a starting value into an ending value over a set number of years. It expresses uneven growth as one comparable figure.

CAGR = (ending value ÷ beginning value)^(1 ÷ number of years) − 1, expressed as a percentage. For $10,000 growing to $25,000 over 10 years, that is about 9.6% a year.

A simple average adds the yearly returns and divides. CAGR compounds them. Gain 50% then lose 50% and the simple average is 0%, but you are down 25% — and CAGR correctly reports about −13.4% a year.

It depends entirely on the context. Broad equity markets have historically compounded around 7%–10% a year over long periods, while an early-stage company might need a far higher rate to be interesting.

It hides volatility completely, ignores money added or withdrawn along the way, and is very sensitive to the start and end dates you pick. Always check the underlying path before trusting a single headline rate.


Popular searches
cagr calculator compound annual growth rate calculator cagr formula annualized return calculator growth rate calculator reverse cagr calculator investment growth rate average annual growth rate
Need help?
Found an issue with this tool? Let our team know.
Report an issue

Add this free tool to your own website — copy and paste the code below.