How to use the CAGR calculator
- Enter the Starting value — revenue, users, price or portfolio value at the beginning.
- Enter the Ending value at the end of the period.
- Enter the Period in years. Decimals are allowed.
- Pick a Currency for the table (it does not change the rate).
- Read the CAGR, total growth and growth multiple, and download the year-by-year table as CSV if you need it.
What it does and when to use it
CAGR turns an uneven history into one comparable number: the rate at which a value would have grown each year if it had grown smoothly. It is the standard way to compare growth over different periods — revenue across five years, an investment held for three and a half years, or a market that went from one size to another.
For a simple gain on money spent, the ROI calculator is enough; it can also annualise a return over a number of years. To see how a single customer’s value builds up, use the customer lifetime value calculator. The break-even calculator shows the volume you need before growth turns into profit.
How it works
CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1, shown as a percentage rounded to two decimals.
The other outputs are:
- Total growth = (ending − starting) ÷ starting × 100
- Growth multiple = ending ÷ starting
- Smooth path for year n = starting value × (1 + CAGR)^n, for each whole year up to 60, plus the exact end of a fractional period.
The starting value and the period must be above zero; the ending value can be zero or more.
Worked examples
10,000 to 25,000 in 5 years. 25,000 ÷ 10,000 = 2.5; the fifth root of 2.5 is 1.2011, so CAGR: 20.11%. Total growth is 150% and the multiple 2.5×. The table climbs $12,011.24, $14,427.00, $17,328.62, $20,813.83, then $25,000.00.
Sales from ₹12 lakh to ₹18.5 lakh in 3½ years. 18,50,000 ÷ 12,00,000 = 1.542; raised to the power 1 ÷ 3.5 gives CAGR: 13.16%. The table shows ₹17,39,065.52 after three years and ₹18,50,000.00 at 3.5.
A decline. From 50,000 to 40,000 over 3 years: 0.8^(1/3) − 1 gives CAGR: -7.17%, total growth −20%.
Limits and tips
- Deposits and withdrawals distort CAGR. For a savings or investment account with regular contributions, a money-weighted return is the better measure.
- This is a calculation aid, not financial advice.
Frequently asked questions
Why not just divide total growth by the number of years?
Can the period be a fraction of a year?
Can CAGR be negative?
Does CAGR tell me how bumpy the ride was?
Can I use it to predict future growth?
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