CAGR Calculator

Calculate the compound annual growth rate from start value, end value, and period.

Category: Calculators

When to use?

Use it to compare how much sales, users, or investment value grew on average over several years. It standardizes investment performance and business metrics on an annual basis.

How to use

  • Enter the start value.
  • Enter the end value and the period (years).
  • The CAGR, total multiple, and total change are shown.

Input Explanation

Enter the start value, end value, and period (years). The period must be greater than 0.

Calculation Basis

CAGR = (end ÷ start)^(1 ÷ period) − 1.

Usage Examples

  • Compare business growth - Calculate the compound annual growth rate of sales or users.
  • Evaluate investment performance - Standardize multi-year value changes into an annual growth rate to compare.
  • Check a target growth rate - Find what annual rate is needed to reach a target end value.

Examples

  • 10,000,000 → 18,000,000 over 5 years → CAGR about 12.47%
  • 20,000 monthly users → 80,000 over 4 years → CAGR about 41.4%

Cautions

  • CAGR is a geometric mean, so it does not reflect extreme volatility in intermediate years.
  • As a compounding geometric mean, CAGR cannot capture severe mid-period volatility or interim losses (negative growth).

FAQ

Is it different from a simple average return?

Yes. CAGR is an annual growth rate that reflects compounding.

How is CAGR calculated?

Raise (end ÷ start) to the power of 1/period, subtract 1, and multiply by 100.

What unit is the period in?

Years. Enter 3 for three years.

Does it work if the start value is 0?

No — you cannot divide by zero, so a start value of 0 has no CAGR.

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