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CAGR Calculator

CAGR is the steady yearly growth rate that would take a starting value to an ending value over a given number of years. Enter the two values and the time between them to compare investments, revenue, users or any figure that grows unevenly.

Quick examples
$
$
years
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CAGR14.87%
Total growth
100%
Growth multiple
2 ×

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      Formula

      CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1
      Total growth = ending value ÷ starting value − 1

      How to use it

      1. Enter the value at the start of the period.
      2. Enter the value at the end.
      3. Enter the number of years between them; fractions such as 2.5 are fine.

      Worked examples

      An investment that doubled from $10,000 to $20,000 in 5 years

      CAGR
      14.87%
      Total growth
      100%
      Growth multiple
      2 ×

      Revenue growing from $1,000,000 to $2,500,000 over 4 years

      CAGR
      25.74%
      Total growth
      150%
      Growth multiple
      2.5 ×

      CAGR is not the average of yearly returns

      A portfolio that gains 50% one year and loses 50% the next has an average return of 0% but is actually down 25%, a CAGR of −13.40%. CAGR reflects what really happened to the money; the simple average overstates it whenever returns vary.

      CAGR says nothing about the path. Two investments with the same CAGR can have very different swings along the way, and it assumes no money was added or withdrawn in between.

      Questions people ask

      What is the CAGR if my investment doubles in 5 years?

      14.87% a year. 2^(1/5) − 1 = 0.1487.

      How do I calculate CAGR by hand?

      Divide the end value by the start value, raise the result to the power of 1 ÷ years and subtract 1. $100 growing to $150 in 3 years: 1.5^(1/3) − 1 = 14.47%.

      What is the difference between CAGR and total growth?

      Total growth is the whole change; CAGR is the per-year rate. Revenue going from $1,000,000 to $2,500,000 in 4 years is 150% total growth and a 25.74% CAGR.

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