Find the compound annual rate at which a salary has grown across several years.
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 salary.
Salary Growth
CAGR = (ending ÷ beginning)^(1 ÷ periods) − 1
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.
Averaging annual growth rates arithmetically overstates performance; CAGR is the geometric rate that actually reconciles the start and end values of a salary.
This calculator takes 3 inputs: Starting salary, Current salary, 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.