Free CAGR calculator
Work out the compound annual growth rate between two values over a number of years — the smoothed yearly rate that gets you from start to end. Runs in your browser; nothing leaves your device.
How it works
No black box — here's exactly what the calculator does.
CAGR is the single, steady yearly rate that would carry your starting value to your ending value over the chosen number of years — one comparable number instead of a noisy year-by-year series.
It computes (ending value / starting value) ^ (1 / number of years) - 1, then multiplies by 100 to show a percentage.
A plain average of yearly rates ignores compounding. CAGR compounds — each year builds on the last — so it reflects how growth actually accumulates.
CAGR assumes smooth, steady growth and ignores the volatility in between. Two series with the same start and end have the same CAGR even if one was far bumpier.
FAQ
What is CAGR?
Compound annual growth rate is the constant yearly rate that would take an investment or metric from its starting value to its ending value over a set number of years, as if it grew steadily each year. It smooths out the ups and downs into one comparable figure.
What is the CAGR formula?
CAGR = (ending value / starting value) ^ (1 / number of years) - 1. Multiply by 100 to express it as a percentage.
Is CAGR the same as average annual growth?
No. A simple average of yearly growth rates ignores compounding and can overstate performance. CAGR accounts for compounding, so it is the more honest single-number summary of growth over multiple years.
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