CAGR Calculator (Compound Annual Growth Rate)
Calculate the compound annual growth rate between a beginning and ending value over any number of years, with total growth and the yearly path.
CAGR, the compound annual growth rate, is the single yearly rate that links a beginning value to an ending value over a number of years. It smooths an uneven history into one comparable figure, which is why it is quoted for revenue, share prices, customer counts, home values and portfolios. The values can be in any unit.
How to use this tool
- Enter the beginning value.
- Enter the ending value.
- Enter the number of years between them; decimals such as 2.5 are fine.
- Read the CAGR, total growth and the year-by-year path it implies.
Formula
CAGR = (Ending value ÷ Beginning value)^(1 ÷ n) − 1
n is the number of years. The growth multiple is Ending ÷ Beginning and total growth is that multiple minus 1. Doubling time at the CAGR is ln 2 ÷ ln(1 + CAGR).
Example
A company's revenue grew from 10,000 to 18,000 in 6 years. The multiple is 1.8, so CAGR = 1.8^(1/6) − 1 ≈ 10.29% a year. Total growth is 80%, and the steady path runs 10,000 → 11,029 → 12,164 → … → 18,000. At that pace revenue doubles about every 7.1 years.
Frequently asked questions
What is a good CAGR?
It depends on what you measure, the risk taken and the time period. Compare against a relevant alternative over the same dates, using the same treatment of fees, inflation and reinvested income.
Can CAGR be negative?
Yes. If the ending value is below the beginning value, CAGR is negative: falling from 1,000 to 500 in a year is −50%. It cannot be calculated when the beginning value is zero or negative, or when the value changes sign.
Why is CAGR lower than the average yearly growth?
The arithmetic average of yearly rates is higher whenever growth varies. A +50% year followed by a −50% year averages 0%, yet leaves you with 75% of where you started — a CAGR of about −13.4%.
What does CAGR hide?
Volatility and timing. Two investments with the same CAGR can have very different paths, one steady and one that fell 40% before recovering. CAGR also ignores money added or withdrawn in between.
This tool gives an estimate for general information only. It is not financial, tax, legal or medical advice — check with a qualified professional before you rely on the result.
Last updated: 2026-10-30