CAGR calculator

Use it to express the growth of an investment, company revenue or a customer base as one steady yearly rate. Enter both values and the period to get the rate.

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How to use it

  1. Enter beginning value, ending value and number of years.
  2. The result appears straight away and updates as you edit.
  3. Copy the result, or copy a link that keeps the same values to share it.

How it is calculated

CAGR = ((ending value ÷ beginning value)^(1 ÷ years) - 1) × 100.

Example

Inputs: Beginning value = 10,000, Ending value = 20,000, Number of years = 5 years. Result: CAGR: 14.87%; Total growth: 100%; Value multiple: 2 x.

Limits and caveats

  • It gives a smoothed average and hides year to year swings.
  • Deposits or withdrawals during the period are not taken into account.

Questions about this tool

Why is CAGR different from the plain average growth?

A plain average adds the yearly percentages and divides, while CAGR includes compounding. A 50% rise followed by a 50% fall averages zero, but CAGR is negative because you really lost 25%.

Can I enter a fraction of a year?

Yes, enter 2.5 for two and a half years. The result is still a yearly rate.

What does the value multiple mean?

It is the ending value divided by the beginning value. A multiple of 2 means the amount doubled over the period.