Finance & Business

CAGR Calculator

Calculate compound annual growth rate from a starting value, ending value and time period, with growth-multiple, annualised return, scenario comparison and a printable investment or business-growth record.

Use calculator See formula Questions

Default example12.4746% per year18,000 ÷ 10,000 = 1.8× over 5 years · total change +8,000 (+80%) · comparison at 8%/year ends at 14,693.28 (+3,306.72 vs actual)

Calculator

Working calculator

Starting value (start)Enter the beginning value, revenue, account balance, price or quantity.Ending value (end)Enter the ending value after the full period.Time period (years)Enter the elapsed time in years. Use decimals for partial years.Comparison annual rate (%)Optional benchmark rate for the what-if comparison and printed record.

Live result12.4746% per year18,000 ÷ 10,000 = 1.8× over 5 years · total change +8,000 (+80%) · comparison at 8%/year ends at 14,693.28 (+3,306.72 vs actual)

Formula used

CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1. Growth multiple = ending value ÷ starting value. Comparison ending value = starting value × (1 + comparison rate ÷ 100)^years.

This is the method behind the answer, so the result can be checked rather than simply trusted.

Visual grid

This number is one point on a larger pattern

CAGR is not just a final answer. It is a step on a line: before and after, input and output, assumption and result.

Micro-timehours, minutes, shiftsHuman scaledays, weeks, projectsMacro-timemonths, years, calendars

InputFormulaResult

12.4746% per year

CalculationTime keeps the path visible: the input, the method and the final number belong together.

12.4746% per year18,000 ÷ 10,000 = 1.8× over 5 years · total change +8,000 (+80%) · comparison at 8%/year ends at 14,693.28 (+3,306.72 vs actual)

Inputs

Starting value: 10,000 start
Ending value: 18,000 end
Time period: 5 years
Comparison annual rate: 8 %

Method

CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1. Growth multiple = ending value ÷ starting value. Comparison ending value = starting value × (1 + comparison rate ÷ 100)^years.

If a value grows from 10,000 to 18,000 over 5 years, the growth multiple is 18,000 ÷ 10,000 = 1.8. CAGR = 1.8^(1 ÷ 5) − 1 = 12.47% per year, before any taxes, fees, inflation or cash-flow timing adjustments.

Assumptions

Starting value must be greater than zero because CAGR divides by the starting value.
The calculator treats the start and end values as positive nominal values before taxes, fees, cash flows or inflation adjustments unless the user has already included them.
CAGR is a smoothed annual rate; it does not show volatility, drawdowns, sequence of returns or cash-flow timing inside the period.
The comparison annual rate compounds once per year for a simple benchmark scenario.

Notes

Use this space on the printed report for client, supplier, classroom, job-location, measurement, quote or approval notes.

Formula

CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1. Growth multiple = ending value ÷ starting value. Comparison ending value = starting value × (1 + comparison rate ÷ 100)^years.

Worked example

If a value grows from 10,000 to 18,000 over 5 years, the growth multiple is 18,000 ÷ 10,000 = 1.8. CAGR = 1.8^(1 ÷ 5) − 1 = 12.47% per year, before any taxes, fees, inflation or cash-flow timing adjustments.

Professional note

Master’s Tip: use CAGR to compare long-period growth rates, but do not mistake it for a year-by-year history. Print the start value, end value and years beside the CAGR so the smooth rate does not hide a bumpy path.

Regional and unit assumptions

Standard or basis: compound annual growth rate using ordinary annual compounding arithmetic. This is a comparison and worksheet calculator, not financial advice, accounting treatment, tax guidance or a performance guarantee.

Assumptions and limitations

Starting value must be greater than zero because CAGR divides by the starting value.
The calculator treats the start and end values as positive nominal values before taxes, fees, cash flows or inflation adjustments unless the user has already included them.
CAGR is a smoothed annual rate; it does not show volatility, drawdowns, sequence of returns or cash-flow timing inside the period.
The comparison annual rate compounds once per year for a simple benchmark scenario.
For investment, tax, accounting or legal decisions, confirm figures with the original statements and a qualified professional where needed.

Methodology & Accuracy

How this calculator is checked

CalculationTime pages are built around visible arithmetic: the formula, assumptions, worked example and practical limitations are shown so the result can be checked rather than simply trusted.

Formula used

CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1. Growth multiple = ending value ÷ starting value. Comparison ending value = starting value × (1 + comparison rate ÷ 100)^years.

Standard or basis

Where a calculator follows a named legal, trade or industry standard, that standard is cited visibly. Otherwise the page uses transparent general arithmetic and states its limits.

Master's Tip

Related calculators

Questions

How do I calculate CAGR?

Divide the ending value by the starting value, raise that ratio to 1 divided by the number of years, then subtract 1. Multiply by 100 to read it as a percentage.

What does CAGR mean?

CAGR means compound annual growth rate. It is the constant annual rate that would take the starting value to the ending value over the selected period.

Is CAGR the same as average annual return?

No. CAGR is a compounded annualised rate. A simple average of yearly returns can give a different answer when returns vary from year to year.

Can CAGR be negative?

Yes. If the ending value is lower than the starting value, CAGR is negative because the value shrank over the period.

What should I print for a CAGR comparison?

Print the starting value, ending value, years, CAGR, growth multiple, comparison annual rate, benchmark ending value, formula, assumptions, date, page URL and notes about the data source.

Calculation note

CAGR is popular because it compresses multi-year growth into one comparable annual rate. That simplicity is useful, but the printed record should keep the endpoints and time period visible so the rate is not read as a promise about each individual year.

CAGR is a smoothing tool

Real growth rarely happens in identical yearly steps. CAGR answers a controlled question: what steady annual rate would connect the starting value to the ending value over the selected time?

The starting value is the denominator

Because the formula divides by the starting value, the starting figure must be positive and meaningful. Mixing net and gross figures, or adding cash flows without adjustment, can make the CAGR misleading.

Printable comparisons prevent overclaiming

A useful CAGR record keeps the formula, endpoints, years, benchmark scenario and limitations together. That makes it suitable for classroom examples, board notes or preliminary investment comparisons without implying advice.

Sources and further readingU.S. SEC Investor.gov — Compound Interest Calculator CFI — CAGR Investopedia — Compound Annual Growth Rate