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CAGR Calculator: Compound Annual Growth Rate

This free CAGR calculator finds the steady yearly growth rate that takes a value from its start to its end over a number of years. Use it for investments, sales, users, revenue or prices.

By Debmedia Technologies LLP · Kolkata, India · Updated

What Is It and When Do You Need It?

CAGR smooths uneven growth into one yearly rate. A business may grow 30% one year and 5% the next, but CAGR tells you the single steady rate that gives the same result. Investors and managers use it to compare things over different time periods.

Enter the start and end values and the years. The tool shows the rate and the smooth path between them.

How to Use This Tool

  1. Enter the start value.
  2. Enter the end value.
  3. Enter the number of years.
  4. Press Calculate.

How the Calculation Works

CAGR = (end ÷ start)^(1 ÷ years) − 1. The table multiplies the start value by (1 + CAGR) each year, so the last row equals the end value.

Worked Example

A value that grows from 100,000 to 250,000 in 5 years has a CAGR of about 20.1% a year. A value that falls from 200 to 150 in 3 years has a CAGR of about −9.1%.

Common Uses

  • Investment and fund returns.
  • Business revenue and users.
  • Population and price trends.
  • Comparing growth over different periods.

Tips and Common Mistakes

  • Count the number of years between the dates, not the number of values.
  • The start value must be above zero.
  • CAGR hides volatility in between.

Next, you may need the ROI calculator, compound interest calculator, SIP calculator, percentage calculator.

Everything runs in your browser. Nothing you type is uploaded, stored or sent to any outside service.

Frequently Asked Questions

The compound annual growth rate is the constant yearly rate at which a value would have to grow to reach its end value from its start value over the period.
CAGR = (end ÷ start)^(1 ÷ years) − 1.
A simple average of yearly changes ignores compounding and can mislead when the values move up and down.
Yes. If the end value is below the start value, the rate is negative.

Disclaimer: results are calculated in your browser from the numbers you enter. Check important results before you rely on them for money, health, safety or legal decisions.