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CAGR Calculator
Convert the change between starting and ending values into an equivalent annual growth rate.
Enter your values
Your result
Compound annual growth rate
8.45% per year
- Total change in value
- 5,000
- Total change (%)
- 50
- Duration in years
- 5
An estimate based on your inputs. Review the assumptions and method below.
How does this calculator work?
CAGR summarizes the journey between two values using a hypothetical constant annual rate that produces the same outcome. It helps compare periods, but does not show fluctuations within them.
The formula
CAGR = ((ending value ÷ starting value)^(1 ÷ years) − 1) × 100
What should you know?
- Fractional years are accepted; for example, 18 months is 1.5 years.
- Assumes no deposits or withdrawals between the start and end. With cash flows, CAGR alone does not represent the investor’s return.
- An ending value below the start produces negative growth. An ending value of zero gives a mathematical −100%, without describing when the loss occurred.
Common questions
Is CAGR the average of annual returns?
It is an equivalent geometric growth rate, not the arithmetic average of yearly percentages. It does not mean the value actually grew at that rate each year.
Can I use it for revenue or customer counts?
Yes, to compare growth from a positive starting value over a known period. Keep the measurement definition consistent and account for changes in data collection.
Sources and verification
How do we choose formulas and check results?
Sources explain the method or its limits; they do not imply that the linked organizations endorse this calculator.