CAGR Calculator

Compound annual growth rate between two values.

Quick answer

  • Formula: CAGR = (Ending / Beginning)^(1/years) − 1
  • Worked example — CAGR: 7.18% (full example below).

CAGR Calculator

Worked example result
CAGR7.18%
Total growth100.00%
Absolute growth$1,000.00

Doubling money in 10 years is a CAGR of 7.18% — not 10% — because growth compounds.

Diagram: how the CAGR Calculator works — you enter Beginning value, Ending value, Years; it applies the formula CAGR = (Ending / Beginning)^(1/years) − 1; and the worked example gives CAGR: 7.18%.
How the CAGR Calculator works — the inputs, the formula, and a worked example (CAGR: 7.18%).

CAGR is the single yearly growth rate that would take an investment from its beginning value to its ending value, smoothing out the ups and downs in between.

It is the standard way to compare the growth of investments, revenue or any quantity over multiple years.

The formula

CAGR = (Ending / Beginning)^(1/years) − 1

Worked example

Doubling money in 10 years is a CAGR of 7.18% — not 10% — because growth compounds.

Worked example for the CAGR Calculator: with Beginning value 1000, Ending value 2000, Years 10, the result is CAGR: 7.18%; Total growth: 100.00%.
The worked example, with the example values entered and the results they give.

The example is pre-loaded in the result panel — press Calculate with your own numbers to replace it.

Frequently asked questions

How is CAGR different from average annual growth?

A simple average of yearly percentage changes overstates growth when values fall in some years. CAGR is the geometric rate that actually connects the start and end values.

Can CAGR be used for revenue or users?

Yes — CAGR works for any quantity measured at two points in time, not just investments.

Category: Finance calculators

Sources & methodology

This calculator applies the formula shown on this page exactly as written, using the standard definitions for its inputs. Results are computed from the values you enter — no data is stored — and are rounded only for display.

Content last reviewed by CalcHub Editorial.

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