CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) for investments, revenue, or any metric over time.
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How to use this calculator
Raise the ratio of end to start value to the power of 1 divided by number of years, then subtract 1.
- 1
Enter the starting value (initial investment or metric).
- 2
Enter the ending value after the period.
- 3
Enter the number of years.
- 4
The calculator returns the CAGR — the steady annualised growth rate that would produce the same result.
Frequently asked questions
What formula does this tool use?
This tool uses CAGR = (End Value ÷ Start Value)^(1 ÷ Years) − 1, then multiplies by 100 for a percentage. It also shows total growth ((End − Start) ÷ Start), the currency gain or loss, and the growth multiple (End ÷ Start).
Does the number of years have to be whole?
No. The exponent 1 ÷ Years accepts decimals, so 2.5 years is valid. Taking 10,000 to 18,000 over 2.5 years gives 26.51% a year, against 12.47% when the same growth takes 5 years.
What does it show for a loss?
A negative percentage. Going from 5,000 to 3,000 in 4 years gives −11.99% a year, total growth of −40.00% and a growth multiple of 0.60×. An end value of 0 gives exactly −100.00%.
When does it show n/a?
If the start value is 0 or negative, the years are 0 or negative, or the end value is negative, the ratio cannot be raised to a meaningful power, so the tool shows n/a instead of NaN. Dividing by a zero start value, for example, would otherwise produce an infinite growth rate.
Does CAGR describe how the value got there?
No. It only uses the first and last values, so two paths that start and end at the same points give the same CAGR even if one was smooth and the other swung wildly. It also assumes nothing was added or withdrawn in between; with deposits, use an IRR-style measure.
Is it limited to investments?
No. Any positive quantity measured at two dates works: revenue, users, a price, or website visits. The tool does not know the unit and the currency symbol on the gain line is only a label, so for non-money figures read that line as a plain difference.
Does it adjust for inflation, tax or fees?
No. The rate is nominal, based only on the two figures you enter. If your end value is after fees and taxes, the CAGR will reflect that; if it is before, the CAGR will be gross. The output illustrates your numbers and is not a forecast.
Compound annual growth rate from two values
Turning a total change into a yearly rate
CAGR answers a narrow question: what constant yearly rate would carry the start value to the end value in the given time? The calculator divides end by start to get the growth multiple, takes the Years-th root of it, and subtracts 1. That root is what spreads the total change evenly across compounding periods.
Worked example: 10,000 to 18,000 in five years
With the default inputs, the end value is 1.80 times the start, which is total growth of 80.00% and a gain of $8,000.00. The fifth root of 1.8 is about 1.1247, so the CAGR is 12.47%. Shortening the same journey to 2.5 years, with identical start and end figures, pushes the CAGR to 26.51%, since the same multiple has to be achieved in less time.
Gain, loss and flat cases
The table pairs four runs with their growth multiple. The 1,000 to 2,590 row corresponds to a multiple of 2.59× over five years, the decline row shows a negative CAGR from a 40% total drop, and the flat row confirms that equal start and end values return exactly 0.00%.
| Start, end, years | CAGR | Total growth | Multiple |
|---|---|---|---|
| 10,000, 18,000, 5 | 12.47% | 80.00% | 1.80× |
| 1,000, 2,590, 5 | 20.97% | 159.00% | 2.59× |
| 5,000, 3,000, 4 | −11.99% | −40.00% | 0.60× |
| 100, 100, 10 | 0.00% | 0.00% | 1.00× |
Comparing CAGR with a simple average
Dividing total growth by the number of years would give 16% for the default case, but 16% a year compounded for five years would overshoot 18,000. CAGR is lower because each year’s growth applies to a larger base. That is why growth in revenue or users is normally compared with CAGR, not with an arithmetic average of the yearly changes.
Reading the result with care
Because only two points are used, the choice of start and end dates can change the answer substantially; the same series can show a high or low CAGR depending on where you begin. Treat the figure as a summary of the numbers you typed, not as a forecast of what the next period will bring. Entering different time spans for the same two values is a quick sensitivity test: 10,000 to 18,000 is 12.47% over five years but 26.51% over 2.5, so a CAGR is only comparable with another measured over a similar span.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →