CAGR Calculator

Find the compound annual growth rate between two values, or the ending or starting value from a yearly rate.

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CAGR calculator in short
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How to use the CAGR calculator

1

Choose what to calculate

CAGR, the ending value or the starting value.

2

Enter the values you know

Starting value, ending value or growth rate.

3

Enter the number of years

Decimals are fine.

4

Read the result

See the rate, total growth and the value each year.

What is CAGR?

CAGR, the compound annual growth rate, is the single steady yearly rate that would take a value from its start to its end over a set number of years. It smooths out the ups and downs, which makes it useful for comparing investments, revenue or any growth over different time periods.

CAGR formulas

CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1

Ending value = starting value × (1 + CAGR)^years

Starting value = ending value ÷ (1 + CAGR)^years

Example 1: $10,000 to $25,000 in 5 years

Find the CAGR.

  • Growth multiple 2.5×
  • CAGR 20.11%
  • Years to double at this rate 3.78 years

Example 2: other results

Quick checks.

  • $100 to $200 in 10 years 7.18% CAGR
  • $10,000 to $15,000 in 2.5 years 17.61% CAGR
  • $1,000 to $500 in 3 years −20.63% CAGR

Example 3: from a rate

Using 8% a year for 5 years.

  • $10,000 grows to $14,693.28
  • Starting value needed to reach $25,000 $17,014.58

Where CAGR is used

Investments

Compare the yearly growth of stocks, funds and portfolios.

Business revenue

Measure sales or user growth over several years.

Real estate

Find the yearly growth of a property value.

Goal planning

See what rate you need to hit a target.

CAGR is a smoothed rate

CAGR does not show volatility or the order of returns, and it ignores money added or taken out along the way. To project regular contributions, use the future value calculator or the compound interest calculator.

CAGR calculator FAQ

It depends on the asset and risk. Over long periods, broad stock markets have often been around 7% to 10% a year, but past results do not guarantee future ones.

Divide the ending value by the starting value, raise it to the power of 1 ÷ years, then subtract 1.

About 20.11% a year.

Yes. If the ending value is lower than the starting value, the CAGR is negative.

An average return adds yearly returns and divides. CAGR is the compound rate that links the start and end values, so it is usually lower when returns go up and down.

Yes. Enter years as a decimal, such as 2.5.

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Estimates, not advice

PureCalculate’s calculators give estimates for planning and education. They aren’t financial, tax or legal advice. Fees and tax rules change, so check the official source before making a decision. Spotted a mistake? Please tell us through the contact page.

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