CAGR Calculator
CAGR calculator
Calculate CAGR or solve start, end, and years from annualized growth.
InputsForm4 fieldsLive
Result
11.43%
Growth factor/year 1.11428843x • Absolute gain 6,500 • Rule of 72 doubling ≈ 6.3 years.
Live update
Flow
- Enter starting value, ending value, and number of years.
- Review CAGR percentage and annual growth factor.
- Compare CAGR across projects with different durations for fair benchmarking.
Example
Worked example: 12,000 to 18,500 over 4 years
- 1 Ratio = 18,500 / 12,000 = 1.5417
- 2 Annual factor = 1.5417^(1/4) = 1.1144
- 3 CAGR = (1.1144 - 1) × 100 = 11.44%
Compound annual growth rate is about 11.44% per year.
How
- Enter starting value, ending value, and number of years.
- Review CAGR percentage and annual growth factor.
- Compare CAGR across projects with different durations for fair benchmarking.
Avoid
- Using CAGR on negative or zero starting values.
- Interpreting CAGR as actual year-by-year volatility instead of smoothed annual rate.
- Comparing periods with different definitions of year length.
FAQ
What does CAGR represent?
CAGR is the constant annual growth rate that links starting and ending values over a period.
Can CAGR be negative?
Yes. If ending value is lower than starting value, CAGR is negative.
Is CAGR the same as average yearly return?
No. CAGR is geometric annualized growth, not arithmetic average of yearly returns.
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