CAGR Calculator: Compound Annual Growth Rate
Calculate the compound annual growth rate — the single steady yearly rate that links a starting value to an ending value.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Annual growth rate | Total growth |
|---|---|---|
| 10,000 to 25,000 over 8yr | 12.14% | 150.00% |
| 5,000 to 8,000 over 5yr | 9.86% | 60.00% |
| 100,000 to 90,000 over 4yr | -2.60% | -10.00% |
| 2,000 to 12,000 over 15yr | 12.69% | 500.00% |
How This Calculator Works
Enter the starting value, the ending value, and the number of years between them. The calculator finds the constant annual rate that, compounded over those years, turns one figure into the other, and shows the total growth alongside.
The Formula
Compound Annual Growth Rate
Start is the beginning value, End is the ending value, n is the number of years
Worked Example
A value rising from 10,000 to 25,000 over 8 years has a CAGR of about 12.1%. The total growth is 150%, but CAGR restates that as the smooth yearly rate that makes periods of different lengths comparable.
Key Insight
CAGR hides volatility. Two investments with the same CAGR can have taken wildly different paths, so it is the right tool for comparing end results but a poor guide to the risk taken along the way.
Frequently Asked Questions
What is CAGR?
Compound annual growth rate is the constant yearly rate that would grow a starting value to an ending value over a set number of years. It is a smoothed average rate.
How is CAGR different from total growth?
Total growth is the whole change from start to end. CAGR spreads that change into a per-year rate, which makes periods of different lengths comparable.
Why does CAGR ignore volatility?
CAGR uses only the start and end values. The path between them — steady, or full of swings — does not change the figure, so it says nothing about risk.
Can CAGR be negative?
Yes. If the ending value is below the starting value, CAGR is negative, showing the steady annual rate of decline over the period.
What is CAGR used for?
It is widely used to compare the historical growth of investments, revenue, or any quantity, by reducing each to a single annual rate.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 2 independent, dated sources.
Methodology & Review
CAGR is the constant annual rate that compounds the starting value to the ending value over the period. It smooths an uneven path and ignores any volatility between the two endpoints.
Written by Ugo Candido · Last updated May 17, 2026.