CAGR Calculator
Find the compound annual growth rate between a starting and ending value: the single steady yearly rate that explains the change.
CAGR
12.14%
- Total growth
- 150.0%
- Absolute change
- $15,000
- Years to double at this rate
- 6.1
The smoothed growth path
Explain my numbers
Get a plain-English reading of the result above: what drives it, what the trade-offs are and what to ask a lender or adviser. It is educational, not financial advice. Only these inputs and results are sent, and nothing is stored.
CAGR formula
CAGR = (End ÷ Begin)1/n − 1
CAGR is a description of the past, not a forecast. It hides the path: two investments with the same CAGR can have had very different ups and downs. Use it to compare growth over the same period, and check volatility separately.
Frequently asked questions
What is the CAGR formula?
CAGR = (Ending value ÷ Beginning value)^(1 ÷ years) − 1. Growing from $10,000 to $25,000 in 8 years is a CAGR of 12.14%.
What is the difference between CAGR and average return?
An average return adds up yearly returns and divides by the number of years, which overstates growth when returns vary. A +50% year followed by a −50% year averages 0% but actually loses 25%. CAGR reflects what really happened to the money.
What is a good CAGR?
It depends on what is growing. For a diversified stock portfolio, long-run CAGRs around 7–10% before inflation are typical historically. For company revenue, it depends heavily on size and industry.
Can CAGR be used for revenue or users?
Yes. CAGR works for any quantity that grows over time: revenue, users, prices, population. Just use the starting and ending values and the number of years between them.