CAGR Calculator

CAGR — the compound annual growth rate — is the single steady yearly rate that grows a beginning value to an ending value over a set number of years. Enter the starting and ending values and how many years passed to get the CAGR, the total growth, the growth multiple and a smoothed year-by-year path.

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CAGR — per year
Total growth —
Growth multiple —
Total change —

CAGR = (ending ÷ beginning) ^ (1 ÷ years) − 1. It is a smoothed rate that reflects only the start and end values and hides the real path in between; it assumes a single amount with no deposits or withdrawals. Works for any growing quantity — investments, revenue, users — not just money.

How to Use the CAGR Calculator

Two values and a number of years.

1

Enter the values

Type the beginning value and the ending value — an investment balance, revenue, a user count, anything measured at two points.

2

Enter the years

Type how many years passed between the two values. Decimals are fine for partial years.

3

Read the result

See the CAGR per year, the total growth, the growth multiple and a smoothed year-by-year path.

Frequently Asked Questions

What is CAGR?
CAGR stands for compound annual growth rate. It is the single steady annual rate that would take a beginning value to an ending value over a given number of years, if it grew by the same percentage every year. Because it compounds, it smooths out the ups and downs of the real path into one representative yearly figure — which makes it the standard way to compare the growth of investments, revenue, users, or any quantity measured at two points in time.
How is CAGR calculated?
The formula is CAGR = (ending value / beginning value) ^ (1 / years) − 1. You divide the ending value by the beginning value to get the total growth factor, raise it to the power of one divided by the number of years, and subtract one. For example, growing from $10,000 to $25,000 over 5 years gives (25000 / 10000) ^ (1/5) − 1 = 2.5 ^ 0.2 − 1 = about 20.1% per year. This calculator does that for you and also shows the total growth, the growth multiple and a smoothed year-by-year path.
What is the difference between CAGR and average annual return?
A simple average return just adds up each year's return and divides by the number of years, which overstates growth because it ignores compounding and the order of returns. CAGR is the geometric average: it reflects the actual compounded result. For example, a 50% gain followed by a 50% loss averages to 0% but the CAGR is negative, because $100 becomes $150 and then $75. When you care about how much an investment actually grew end to end, CAGR is the honest figure; the simple average is almost always higher.
What are the limitations of CAGR?
CAGR is a smoothed rate: it describes the start and end points only and hides all the volatility in between, so two investments with the same CAGR can have very different risk and very different paths. It also depends heavily on the start and end dates you pick, it assumes a single lump sum with no deposits or withdrawals along the way, and it says nothing about the future. Use it to summarise past growth or compare options over the same period, not as a prediction — and for regular contributions use a dollar-cost averaging or investment calculator instead.

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