Worked example
From $10,000 to $15,000 in five years equals about 8.45% annualized growth.
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Business finance
CAGR Calculator
Find the smoothed annual growth rate between two values.
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Adjust the example to calculate using your own figures. Results update instantly.
Your results
Calculated locally- Compound annual growth rate
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- Total change
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Important assumptions
Does not account for interim deposits, withdrawals or volatility.
How to use your results
CAGR smooths varying year-by-year growth into a single constant annual rate, useful for comparing long-term growth paths.
Start with the example values, then replace them with amounts for the same transaction or time period. Double-check rates and units. The results are estimates intended to help you explore possible outcomes, not financial or tax advice.
Growth between two points
CAGR compresses the entire period into a single annual rate. It is useful when comparing investments or business revenue over different time horizons, but it hides all the intermediate ups and downs.
When CAGR is misleading
A company that grows rapidly and then shrinks may have the same CAGR as one that expands smoothly. CAGR also fails to model additional deposits or withdrawals, making it unsuitable as a personal portfolio return in those cases.
Is CAGR the same as average yearly percentage change?
Not necessarily. CAGR is a geometric rate that compounds to match the endpoints; the arithmetic average of annual changes usually differs.
How to calculate cagr
CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1
CAGR smooths varying year-by-year growth into a single constant annual rate, useful for comparing long-term growth paths.