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CAGR Calculator

Calculate compound annual growth rate between a beginning value and ending value over a number of years.

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CAGR Calculator

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How to use this cagr calculator

Enter the requested values above and select Calculate. The result updates immediately on the page, so you can change one value and compare different scenarios without leaving the calculator.

Formula and method

CAGR = (ending value ÷ beginning value)^(1/years) − 1.

Example

Growth from 100,000 to 150,000 over five years has a CAGR of about 8.45%.

What this calculator is useful for

Calculate compound annual growth rate between a beginning value and ending value over a number of years. It is designed for quick estimates and everyday problem solving. When a calculation affects a contract, tax filing, medical decision or other high-stakes situation, verify the result with the appropriate professional or authoritative source.

Growth over several years is not the average yearly percentage

Growing from $12,000 to $18,000 over four years implies CAGR = (18,000 ÷ 12,000)^(1/4) − 1, approximately 10.67% per year. It is the constant annual growth rate that would connect the two endpoints.

What to check: CAGR smooths fluctuations and ignores the path between the beginning and ending figures. It should not be used as an annual return if external deposits or withdrawals changed the investment.

Compare with the Investment Return calculator when that better matches the question you are trying to answer.

Frequently asked questions

What does the CAGR Calculator calculate?

Calculate compound annual growth rate between a beginning value and ending value over a number of years.

How does the calculation work?

CAGR = (ending value ÷ beginning value)^(1/years) − 1.

Is this calculator free?

Yes. ERICH Calculators is free to use and no account is required.

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