CAGR Calculator
Calculate compound annual growth rate from starting value, ending value, and years.
CAGR Calculator
Result
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Why use this tool
CAGR expresses the constant annual growth rate that would connect a starting value to an ending value over a period. It makes growth across different time spans easier to compare.
CAGR smooths the journey between the first and last values, so it does not show year-to-year volatility. Use it as an annualized summary rather than a record of actual yearly returns.
How to use
- Enter the starting value.
- Enter the ending value.
- Enter the number of years.
- Calculate to see CAGR as a percentage per year.
Use cases / examples
- Compare long-term investment growth.
- Measure revenue growth across several years.
- Compare portfolios over equal or different periods.
- Summarize user or business metric growth.
FAQ
What is the CAGR formula?
CAGR = (ending value / starting value)^(1 / years) - 1.
Does CAGR equal the return in every year?
No. It is a smoothed annualized rate between the start and end values.
Can CAGR be negative?
Yes, when the ending value is below the starting value.
Why must values and years be above zero?
The standard formula requires positive start/end values and a positive time period.