CAGR Calculator – Compound Annual Growth Rate
Calculate the compound annual growth rate (CAGR) of an investment, revenue, or any other metric from a starting value, an ending value, and a duration in years — without sending your figures to a server.
How it works
CAGR answers a simple question: 'if growth had been perfectly steady every year, what would that annual rate have been?' It smooths out period-to-period fluctuations to give one comparable figure, widely used to assess investment performance, revenue growth, or how a metric evolved over several years.
How is CAGR different from a simple average of annual growth rates?
An arithmetic average of annual rates ignores the compounding effect: a 50% increase followed by a 50% decrease does not return to the original value, but to 75% of it. CAGR takes this cumulative effect into account by relying only on the starting value, the ending value, and the number of years, making it a more faithful measure of real growth over time.
Can CAGR be negative?
Yes. If the ending value is lower than the starting value, the calculated CAGR will be negative, reflecting an average annual decrease. The result is interpreted the same way: for example, a CAGR of -5% means an average decline of 5% per year over the period.
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