Home › CAGR Calculator
CAGR Calculator
Enter a starting value, an ending value and the number of years between them. You get the yearly growth rate that links the two.
Example
Growing from $10,000 to $25,000 in 10 years is a compound annual growth rate of 9.60%, or 2.50 times the starting value.
How the cagr calculator works
CAGR is the constant yearly rate that would take the starting value to the ending value: CAGR = (end / start)1/years − 1.
Real growth is uneven. CAGR smooths it into a single figure, which makes it useful for comparing investments, revenues or populations over different periods.
It only looks at the first and last values, so it tells you nothing about the ups and downs in between.
Common questions
How is CAGR different from average growth?
A simple average of yearly growth rates overstates the result when growth varies. CAGR accounts for compounding and always matches the actual start and end values.
Can I use CAGR for periods shorter than a year?
You can, by entering the time as a fraction of a year in the formula, but annualising a short period can give misleading figures.
Does CAGR work with deposits and withdrawals?
No. It assumes a single starting amount with nothing added or removed. For cash flows at different dates, an internal rate of return is the right measure.