CAGR Calculator | Compound Annual Growth Rate
Calculate compound annual growth rate from starting value, ending value, and number of years to compare long-term growth.
Calculate Compound Annual Growth Rate
Enter starting value, ending value, and number of years to calculate CAGR, the annualized growth rate that connects the first value to the final value.
CAGR Smooths Out Volatility
CAGR shows average annual growth, not what happened each year. It can hide swings, losses, deposits, withdrawals, and irregular cash flows.
Where CAGR Comparisons Help
Use it for revenue growth, portfolio value, website traffic, customer counts, business metrics, and comparing long-term performance across different time periods.
Overview
CAGR Calculator computes the compound annual growth rate of an investment over a period, smoothing out volatility into a single annualised figure. It is used to compare investment performance and communicate growth clearly.
Good Times to Use It
Use this to compare two investments that grew at different rates over different periods, when reporting business revenue growth as an annual percentage, or when estimating a future value from a historical growth rate.
How to Get Your Result
- Enter the beginning value.
- Enter the ending value.
- Enter the number of years.
- Click Calculate to see the compound annual growth rate.
Questions People Ask
What does CAGR tell you that simple growth does not?
CAGR accounts for compounding each year, giving a single rate that represents consistent growth from start to end. Simple growth just divides total change by the number of years.
Is CAGR the same as average annual return?
No. Average annual return averages the year-by-year percentage changes. CAGR is a geometric mean that reflects the actual compounded start-to-end change.
Can CAGR be negative?
Yes. If the ending value is lower than the beginning value the CAGR is negative, representing a compound annual decline.
You Might Also Need
Related Guide
How to Calculate Loan Payments, Interest and Borrowing CostsUse loan calculators to estimate monthly payments, total interest, and the real cost of borrowing before committing to a mortgage, car loan, or any other credit offer.