CAGR Calculator (Compound Annual Growth Rate)

Find the average yearly growth rate of revenue, investments or users.

$
$

Results

CAGR
12.47%
Total growth
80%
Absolute change
$80,000.00

CAGR (Compound Annual Growth Rate) is the constant yearly rate at which a value would have grown from its beginning to its ending value. It turns uneven growth into a single, comparable number.

It is widely used to analyse company revenue, portfolio performance, market size and user growth, and to build forward-looking projections.

How to calculate CAGR

  1. Enter the value at the start of the period.
  2. Enter the value at the end of the period.
  3. Enter the number of years (fractions like 2.5 are fine).

CAGR formula

  • CAGR = (Ending value ÷ Beginning value)^(1 ÷ Years) − 1

CAGR example

Revenue growing from $100,000 to $180,000 over 5 years is a CAGR of 12.47%, with 80% total growth.

CAGR: common questions

Is CAGR the same as average annual growth?

No. A simple average can misrepresent volatile growth; CAGR accounts for compounding and gives the true yearly rate from start to finish.

What are the limitations of CAGR?

It hides year-to-year volatility and depends only on the start and end values. For investments with interim cash flows, IRR is more appropriate.

What does a negative CAGR mean?

The value shrank on average each year over the period.