CAGR calculator

CAGR calculator: what it is for

Enter the starting value, the ending value and the period in years and months to get the CAGR, the compound annual rate that takes one value to the other. You also see the total growth, how many times the value multiplied, the equivalent monthly rate and a comparison with the simple average, which is often misleading. The chart shows the compound path against the linear one, and the table shows each year's value at the CAGR pace.

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How to use

1. Enter the starting and ending values.
2. Enter the period in years and months.
3. See the CAGR and the growth path.

When to use it

• Compare investment returns.
• Measure a company's revenue growth.
• Track growth in customers, sales or net worth.

Frequently asked questions

What is CAGR?

CAGR (Compound Annual Growth Rate) is the constant rate that, applied every year with compounding, takes the starting value to the ending value. Formula: (end ÷ start)^(1 ÷ years) − 1.

Why not divide total growth by the number of years?

Because growth compounds. A value that doubles in 5 years grew 100% in total, but its CAGR is 14.9% a year, not 20%: each year grows on top of the previous year's base.

What is it used for?

To compare investments, company revenue, customer counts or any metric over different periods with a single annual rate. It ignores the volatility along the way: it only shows the smoothed average.

Can I use partial years?

Yes. Enter years and months (for example, 3 years and 6 months) and the tool uses the exact period.

Is it really free?

Yes, 100% free. No sign-up, no subscription and no usage limits. All Tools123 are free.

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