Compound Annual Growth Rate Calculator

Find the constant annual rate that reconciles a starting and ending value over several years.

About Compound Annual Growth Rate Calculator

CAGR is the constant annual rate that would take the beginning value to the ending value over the period. It smooths out the year-to-year volatility that makes raw growth rates hard to compare. Averaging annual growth rates arithmetically overstates performance; CAGR is the geometric rate that actually reconciles the start and end values of a revenue.

Formula

Compound Annual Growth Rate

CAGR = (ending ÷ beginning)^(1 ÷ periods) − 1

Beginning value: Beginning value
Ending value: Ending value
periods: Number of years elapsed

Worked example

With the default values below, Compound Annual Growth Rate Calculator returns Compound Annual Growth Rate of 17.608%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Beginning valueminimum 0.01: 400,000
Ending valueminimum 0: 900,000
Number of periodsaccepts 0.25–60 years: 5 years

Results

Compound Annual Growth Rate: 17.608%
Total Growth Over Period: 125.00%
Growth Multiple: 2.250
Years to Double at This Rate: 4.27

Step by step

1Values used
2Compound Annual Growth Rate
3Compound Annual Growth Rate= 17.608
4Total Growth Over Period= 125.00
5Growth Multiple= 2.250
6Years to Double at This Rate= 4.27

Assumptions and limits

The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Compound Annual Growth Rate calculated?

CAGR = (ending ÷ beginning)^(1 ÷ periods) − 1 CAGR is the constant annual rate that would take the beginning value to the ending value over the period. It smooths out the year-to-year volatility that makes raw growth rates hard to compare.

Why does Compound Annual Growth Rate matter?

Averaging annual growth rates arithmetically overstates performance; CAGR is the geometric rate that actually reconciles the start and end values of a revenue.

What values do I need to enter?

This calculator takes 3 inputs: Beginning value, Ending value, Number of periods. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.