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CAGR Calculator

CAGR smooths uneven growth into one steady yearly rate. Enter the starting value, ending value and years.

Your numbers

Result

Estimate for information only, not professional advice. Last reviewed .

How we calculate it

CAGR = (ending value ÷ beginning value)^(1 ÷ years) − 1. It is the constant annual rate that grows the beginning value into the ending value over the period.

The total growth shown is simply ending ÷ beginning − 1 expressed as a percentage.

Assumptions and limits

  • CAGR hides volatility. Two investments with the same CAGR can have very different ups and downs.
  • Both values must be positive for CAGR to be defined.

Frequently asked questions

Is CAGR the same as average annual return?

No. The arithmetic average of yearly returns is usually higher than CAGR when returns vary. CAGR reflects what actually happened to the balance.

What time period should I use?

Use the exact number of years between the two values. For partial years use decimals, such as 4.5 years.

Can I use CAGR for revenue or users?

Yes. CAGR works for any quantity that grows over time, such as revenue, subscribers or website visits.

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Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Beginning value ($) = 8000; Ending value ($) = 15500; Number of years = 6.

  • CAGR 11.65%
  • Total growth 93.75%

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.