CAGR Calculator (Compound Annual Growth Rate)
Results are estimates based on the values you enter. Recheck your inputs and assumptions before using the output for decisions.
Measure annualized growth between two values.
CAGR Calculator (Compound Annual Growth Rate)
Free online CAGR calculator to measure the compound annual growth rate between a beginning value and an ending value over a selected number of years. This calculator is useful for investors, business owners, finance teams, analysts, students, and anyone comparing growth across assets, revenue, profit, portfolio value, or market size. CAGR is one of the most practical growth metrics because it converts uneven total growth into a single steady annual rate. Even if the real path was volatile, CAGR answers the question: what constant yearly growth rate would turn the starting value into the ending value over the selected period?
This page uses three simple inputs. Beginning value means the value at the start of the period. Ending value means the value at the end of the period. Years means the total length of the holding or growth period. Once those values are entered, the calculator shows CAGR and growth multiple. CAGR gives the annualized compounded growth rate, while growth multiple shows how many times the beginning value became by the end. These two outputs work well together because one provides a yearly percentage and the other gives a direct size comparison between start and finish.
The formula of CAGR
Growth multiple = Ending value / Beginning value
CAGR = (Ending value / Beginning value) ^ (1 / Years) – 1
Here beginning value means the value at the start of the period, ending value means the value at the end of the period, growth multiple means how many times the starting value became over the whole period, and CAGR means the equivalent yearly compounded growth rate that links the beginning value to the ending value across the selected number of years.
Solved Example
Example 1: Find the CAGR if the beginning value is $10,000, the ending value is $15,000, and the period is 5 years.
Solve: Growth multiple = 15000 / 10000 = 1.5
CAGR = (1.5 ^ (1 / 5)) – 1 = 0.08447 = 8.45%
Example 2: Find the CAGR if a business grows from $2,000,000 to $3,600,000 in 6 years.
Solve: Growth multiple = 3600000 / 2000000 = 1.8
CAGR = (1.8 ^ (1 / 6)) – 1 = 0.10299 = 10.30%
Example 3: Find the CAGR if an asset falls from $50,000 to $40,000 over 4 years.
Solve: Growth multiple = 40000 / 50000 = 0.8
CAGR = (0.8 ^ (1 / 4)) – 1 = -0.05426 = -5.43%
Table of CAGR calculator
| Beginning Value | Ending Value | Years | Growth Multiple | CAGR |
|---|---|---|---|---|
| $10,000 | $15,000 | 5 | 1.50 | 8.45% |
| $20,000 | $30,000 | 4 | 1.50 | 10.67% |
| $50,000 | $40,000 | 4 | 0.80 | -5.43% |
| $2,000,000 | $3,600,000 | 6 | 1.80 | 10.30% |
How to use this CAGR calculator
Enter the beginning value in the proper input field. After that, enter the ending value and then enter the number of years in the selected growth period. Make sure the values belong to the same asset, business measure, or investment period. Then click the calculate button. The calculator will show CAGR and growth multiple in the result box.
This calculator is useful when you want to compare growth across investments or business results that span multiple years. Total growth alone can be misleading because the same total increase over two years is very different from that same increase over ten years. CAGR solves that by converting the result into a comparable annual rate. It is often used in portfolio analysis, company revenue review, valuation discussions, market-sizing studies, and long-term business planning. Looking at growth multiple beside CAGR also helps you understand both the annual rate and the total scale of change.
When using the result, remember that CAGR smooths growth into a constant annual rate. It does not show volatility, drawdowns, interim cash flows, or year-by-year changes inside the period. It is best used as a summary and comparison metric rather than a full performance-history tool. Even so, CAGR remains one of the clearest ways to describe compounded growth over time. This calculator gives a fast numerical view that supports investment comparison, revenue analysis, market-growth review, and business performance reporting.