Business calculator
Free CAGR Calculator
Calculate compound annual growth rate between beginning and ending values over a number of years.
CAGR Calculator
CAGR smooths growth into an annualized rate; it does not mean growth occurred evenly each year.
Understand the result
Annualize growth between two endpoint values
CAGR, or compound annual growth rate, smooths the change between a beginning value and ending value into an annualized rate. It does not imply the business grew evenly each year.
Focused formula
The result uses only the inputs relevant to this business question.
Private in your browser
Values are calculated locally and are not stored or sent anywhere.
Use the calculator
Enter the figures you already have
- 1
Add your inputs
Use the labels and period shown in the form.
- 2
Review the math
Results update as your assumptions change.
- 3
Apply the result
Use it as a planning reference for the next decision.
What CAGR means
CAGR answers the question: what constant annual rate would turn the beginning value into the ending value over the stated years?
Limitations
CAGR ignores the path between endpoints. It can hide volatility, losses, or unusually strong individual years.
Worked example
A beginning value of $100,000 and ending value of $133,100 over 3 years produces a 10% CAGR and a $33,100 absolute increase.
Frequently asked questions
Practical questions people ask about this tool
What if the beginning value is zero?
CAGR is not calculable because the formula divides by the beginning value; enter a beginning value greater than zero.
Can ending value be zero?
Yes. The result is -100% for any positive beginning value.
Is CAGR the same as simple growth?
No. Simple growth shows total change, while CAGR annualizes that change over time.
Does CAGR describe every year accurately?
No. It is a smoothed annual rate and does not show year-by-year variation.
Related tools
Related business tools
Revenue Growth Calculator
Compare actual revenue periods.
Revenue Forecast Calculator
Project future revenue.
ROI Calculator
Calculate return relative to investment.
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