Compare Performance
Compare investments or business metrics that started at different values or ran for different periods.
Investment Growth Tool
Professional CAGR Calculator
Calculate the compound annual growth rate of an investment, business, portfolio, revenue stream, or any value that changes over a specified period.
Enter Your Values
Provide the beginning value, ending value, and duration.
Growth Analysis
Your calculated annual growth performance.
Compound Annual Growth Rate
12.47%
The value increased at an average compounded rate of 12.47% per year.
Beginning Value
$10,000.00
Ending Value
$18,000.00
Total Growth
80.00%
Absolute Change
$8,000.00
Growth Multiple
1.80×
Duration
5 years
CAGR Formula
CAGR = (Ending Value ÷ Beginning Value)1 ÷ Years − 1
What Is a CAGR Calculator?
A CAGR Calculator measures the average annual rate at which a value grows or declines over a particular period, assuming the growth compounds every year. CAGR stands for Compound Annual Growth Rate.
Unlike a simple average, CAGR accounts for compounding and converts the total change into one consistent yearly rate. It is commonly used to evaluate investments, company revenue, sales, profits, customer growth, property values, and market performance.
Includes Compounding
CAGR reflects compounded growth rather than dividing the overall percentage change by the number of years.
Simple Annual Rate
Turn a multi-year performance period into one clear annualized rate that is easier to understand.
How to Use the CAGR Calculator
You only need three values to calculate CAGR. Follow these simple steps:
1
Enter the beginning value
Add the initial value of your investment, revenue, asset, or other financial metric.
2
Enter the ending value
Add the final value reached at the end of the measurement period.
3
Enter the number of years
Enter the full duration between the beginning and ending values. Decimal durations are also accepted.
4
Review your growth analysis
The calculator displays CAGR, total percentage growth, absolute change, and the growth multiple.
CAGR Calculation Example
Suppose an investment grows from $10,000 to $18,000 over five years. The CAGR calculation is:
Example Result
Beginning value: $10,000
Ending value: $18,000
Duration: 5 years
Formula: ($18,000 ÷ $10,000)1 ÷ 5 − 1
CAGR: approximately 12.47% per year
This means the investment grew at an annualized compounded rate of approximately 12.47%, even though the actual return may have been different in each individual year.
CAGR Calculator FAQs
CAGR means Compound Annual Growth Rate. It represents the
annualized rate at which an investment or value would
have grown if it had increased at a steady compounded
rate each year.
The formula is CAGR = (Ending Value ÷ Beginning Value)
raised to the power of (1 ÷ Number of Years), minus one.
Multiply the result by 100 to express it as a percentage.
Yes. CAGR will be negative when the ending value is less
than the beginning value. A negative CAGR represents an
annualized decline over the selected period.
Not always. A simple average adds yearly returns and
divides them by the number of years. CAGR uses the
beginning value, ending value, duration, and the effect
of compounding.
No. CAGR provides a smoothed annual growth rate and does
not show volatility, yearly losses, fees, taxes, or
fluctuations during the period.
Yes. You can calculate the CAGR of revenue, profit,
customers, website traffic, market size, property value,
or any other positive value measured across time.
Disclaimer: This calculator provides estimates
for educational and planning purposes. It does not include
taxes, fees, cash flows, inflation, or investment risk and
should not be treated as financial advice.