CAGR Calculator
Find the steady annual growth rate that takes a starting value to an ending value.
Enter your details below.
How to use
- Enter the starting value.
- Enter the ending value and the number of years between them.
- Press Calculate to see the compound annual growth rate.
About this tool
This calculator finds the compound annual growth rate, or CAGR, which is the single steady yearly rate that would grow a starting value into an ending value over a set number of years. It uses the formula CAGR = (ending value divided by starting value) raised to the power of 1 divided by years, minus 1. Real growth is rarely steady, so CAGR smooths the ups and downs into one average rate.
Frequently asked questions
How is CAGR different from a simple average?
A simple average divides total growth by the number of years, which ignores compounding. CAGR accounts for compounding, so it is the steady rate that actually connects the start and end values.
Can CAGR be negative?
Yes, if the ending value is lower than the starting value, the CAGR is negative, showing an average yearly decline over the period.