CAGR Calculator

Find the steady yearly growth rate that turns a starting value into an ending value — for investments, revenue or users.

Quick answer

A CAGR calculator finds the steady yearly growth rate that turns a starting value into an ending value over a number of years. Growing from 100 to 200 in five years is a CAGR of 14.87%. It smooths volatile results into one figure but ignores deposits and withdrawals in between.

$
$
yrs
CAGR
16.50%
Total growth
150.00%
Growing from $10,000 to $25,000 over 6 years is a total change of 150.0%, equivalent to a steady 16.50% per year. CAGR smooths out the ups and downs to show the constant yearly rate that gives the same result.

Key takeaways

  • CAGR = (end ÷ start)^(1/years) − 1.
  • A simple average overstates growth when returns vary.
  • CAGR equals annualized ROI.
CAGR — Compound annual growth rate: the constant yearly rate that links a beginning and ending value.

How the cagr calculator works

CAGR assumes growth compounded at one constant rate each year. It smooths volatile year-to-year changes into a single comparable figure.

Formula

CAGR = (ending value ÷ beginning value)^(1/years) − 1

Standard formula. Further reading: Investopedia – Compound annual growth rate (CAGR)

Worked example

Growing from 100 to 200 in 5 years: (200 ÷ 100)^(1/5) − 1 = 14.87% per year.

Change any number above and the plain-English explanation updates instantly with your own figures.

Frequently asked questions

Why use CAGR instead of average growth?

A simple average of yearly returns overstates growth when returns vary. CAGR reflects the true compounded result.

Can CAGR be negative?

Yes, when the ending value is lower than the beginning value.

Does CAGR account for deposits?

No. CAGR only uses start and end values. For regular contributions, use the compound interest calculator.

What is a good CAGR?

For a broad stock index, about 7–10% over long periods. For a startup's revenue, much higher.

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Results are estimates for educational purposes and are not financial advice.

Written and reviewed by Muhammad Asif, founder of CalcPane · Formulas verified by automated tests · Updated