Compound Annual Growth Rate (CAGR) Calculator

CAGR calculator for annualized growth rate between two values

CAGR stands for compound annual growth rate. It is the single percentage that describes how fast something grew per year, on average, assuming the growth compounded smoothly. People use CAGR to compare revenue growth across companies, measure multi-year subscription or user growth, and describe long-term investment performance without getting distracted by year-to-year volatility.

This calculator is built for one job: given a starting value, an ending value, and a time period, it returns the annualized growth rate. That rate is easier to compare than raw totals because it normalizes growth over time. For example, growing from 100 to 200 is a 100% total increase, but the CAGR depends on whether it took 1 year, 3 years, or 10 years.

To use it fast, enter your starting value, ending value, and the number of years. If you know the exact start and end dates (common for financial statements or reporting periods), open the Advanced section and add both dates. When dates are supplied and valid, the calculator will compute the time in years using the number of days between dates divided by 365.25. This gives you a more precise CAGR for periods that are not exactly whole years.

The primary output is CAGR, shown as a percent per year. Under that you will also see the total growth over the period (the overall percentage change from start to end), the annual growth factor (the multiplier applied each year), and a simple linear average change per year. That last figure is not compounded. It is included only as a secondary comparison because some planning conversations use a straight-line annual change even though CAGR is the standard way to describe compounded growth.

What this calculator does not do is forecast future growth or model irregular cash flows. CAGR is a descriptive metric, not a prediction tool. It summarizes the growth between two points. If you need to evaluate multiple deposits, withdrawals, or month-by-month flows, you need a different calculator (for example, IRR or XIRR). This page intentionally stays focused on CAGR so the outputs stay clean and reliable.

Assumptions and how to use this calculator

• Both starting value and ending value must be greater than 0. CAGR is not defined for a starting value of 0, and negative values do not represent standard CAGR use cases.
• The time period must be greater than 0 years. If you use dates, the calculator uses the exact day difference divided by 365.25.
• If the ending value is lower than the starting value, CAGR will be negative. That represents an average compounded decline per year.
• The CAGR formula assumes smooth compounding for the purpose of summarizing growth. Real-world performance can vary year to year and still have the same CAGR.
• The “average change per year (linear)” figure is a straight average, not compounded. Use CAGR for comparisons across different time periods.

Common questions

What is the formula for CAGR?

The standard formula is: CAGR = (Ending Value ÷ Starting Value)^(1 ÷ Years) − 1. It turns total growth over multiple years into a single annualized rate that compounds.

Why can CAGR be negative?

If the ending value is lower than the starting value, the ratio (end ÷ start) is less than 1. The formula then produces a negative percentage. That is expected and means the value declined on average each year, compounded.

Should I use “years” or the date fields?

Use “years” when you are doing a quick estimate or your period is an even number of years. Use dates when you want accuracy across partial years, irregular reporting periods, or you want the result to match an exact start and end date.

Is CAGR the same as average annual growth?

No. CAGR is compounded. A simple average annual growth rate can be misleading because it ignores compounding. This calculator shows a linear average change per year as a secondary figure, but the main comparison metric is CAGR.

When is CAGR not a good metric?

CAGR is not suitable when there are meaningful cash flows in between the start and end values (for example, regular deposits or withdrawals in an investment account). In those cases, a return metric like IRR or XIRR is more appropriate.