How to use
- In Find CAGR, enter a starting value, an ending value and the number of years. The compound annual growth rate appears instantly. Any positive quantity works — revenue, a portfolio, active users.
- Switch to Future value from CAGR to project a value forward from a starting point, a growth rate and a period.
- The table shows the value at the end of each year if growth had been perfectly steady, plus the increase from the year before.
Formulas
| Item | Formula |
|---|---|
| CAGR | (ending value ÷ starting value)^(1 ÷ years) − 1 |
| Future value | starting value × (1 + CAGR)^years |
| Total growth | (ending value ÷ starting value − 1) × 100 |
| Time to double | ln 2 ÷ ln(1 + CAGR) |
CAGR answers one question: if the value had grown by the same percentage every year, what would that percentage be? Fractional periods such as 2.5 years are fine.
Examples
| Situation | Calculation | Result |
|---|---|---|
| Revenue grows from 10,000 to 18,000 in 5 years | 1.8^(1/5) − 1 | CAGR about 12.47% |
| 1,000 growing at 7% a year for 10 years | 1,000 × 1.07¹⁰ | about 1,967.15 |
| 100 falls to 50 over 3 years | 0.5^(1/3) − 1 | CAGR about −20.63% |
An 80% gain over five years is not 16% a year. Compounded, it is 12.47% a year — a pace that doubles a value roughly every 5.9 years.
Things to keep in mind
- Results are for reference only. CAGR hides volatility. A year of +50% followed by a year of −50% averages 0%, but 100 → 150 → 75 is a CAGR of about −13.40%.
- A future value simply extends one growth rate; past growth is no guarantee of future growth.
- If money was added or withdrawn along the way, CAGR of the account balance does not measure investment performance.
- To compare investments over different holding periods, use the ROI calculator; for a simple change between two numbers, the percent change calculator is quicker.
FAQ
Is CAGR the same as average annual return?
Only when “average” means the geometric (compounded) average. The arithmetic average of yearly returns is usually higher than the CAGR when returns vary.
Can CAGR be negative?
Yes. If the ending value is lower than the starting value, CAGR is negative. The starting value must be above zero.
Is anything I enter saved or sent anywhere?
No. All calculations run in your browser.