CAGR Calculator – Growth Rate

CAGR answers the only question that matters when growth happened over several years: what constant yearly rate connects the starting value to the ending value? The formula divides end by beginning, takes the n-th root where n is the number of years, and subtracts one. Example: revenue climbing from 1,200,000 to 2,800,000 in 6 years grew at (2.8 ÷ 1.2)^(1/6) − 1 = 2.3333^0.1667 − 1 ≈ 15.2% per year — even if the actual yearly path bounced wildly, CAGR describes the smooth equivalent. That smoothing is both the strength and the blind spot: it hides volatility, so pair it with the yearly figures before judging risk. The measure works identically for portfolios (an index from 3,000 to 4,800 over 5 years = 9.9% CAGR), customer counts, or any value that compounds across periods.

1. 1

   Step 1

   Enter the beginning value and the ending value.

2. 2

   Step 2

   Enter the number of periods (years) between them.

3. 3

   Step 3

   Read the CAGR as a yearly percentage.

4. 4

   Step 4

   Sanity-check it against the actual yearly path for volatility.

• Averaging yearly growth rates

• Wrong period count

• CAGR on a negative base