How to use it
- Choose Growth rate from two values to find the rate, or End value from a rate to find the end.
- Type the Start value and the Number of years.
- Type the End value or the Growth rate per year, depending on your choice.
- Read the result and the steps, and open the table for the value of each year.
How the compound annual growth rate is calculated
The compound annual growth rate, CAGR, is the steady yearly rate at which a value would have to grow, each year on the one before, to go from the start value to the end value. Real values rarely grow steadily, so the CAGR is a way to compare periods, not a description of each year.
The end value is found the other way round: the start value is multiplied by one plus the rate, once for each year.
CAGR = (end ÷ start)^(1 ÷ years) − 1
End value = start × (1 + rate)^years
start the value at the beginning
end the value at the end
years the time between them, in years- From 10,000 to 25,000 in 5 years: 2.5^(1/5) − 1 = 0.2011, so the CAGR is 20.11% a year.
- A CAGR of 0% means the value did not change on average; a CAGR of -100% means it fell to zero.
Periods that are not whole years
The formula works with fractions of a year. For 2.5 years, 100 to 200 gives 2^(1/2.5) − 1 = 31.95% a year. The table is drawn only for whole years, up to 100.
What this calculator does not include
- Years in which the value rose and fell. The CAGR gives only the end-to-end average, and the path in between can be very different.
- Money that came in or went out during the period, such as dividends, contributions or withdrawals. Use the ROI calculator or the NPV and IRR calculator for that.
- Inflation, taxes and fees.
Worked example: 10,000 to 25,000 in 5 years
The ratio of the end to the start is 25,000 ÷ 10,000 = 2.5. The fifth root of 2.5 is 1.2011, so the CAGR is 20.11% a year.
Going the other way, 10,000 at 10% a year for 5 years gives 10,000 × 1.10^5 = 16,105.10.
| Figure | |
|---|---|
| Compound annual growth rate | 20.11% |
| Total change | 15,000.00 |
| End value at 10% for 5 years | 16,105.10 |
Frequently asked questions
What is the difference between CAGR and the average yearly change?
The average yearly change adds up the yearly percentages and divides them, which ignores compounding. The CAGR assumes each year grows on the one before, so it gives the rate that really connects the start and the end.
Can I use CAGR for a period of less than a year?
Yes. Enter the fraction of the year, such as 0.5 for six months. The result is the rate for a full year that would give the same growth.
Why is my CAGR negative?
The end value is lower than the start value, so the value fell on average. Enter a rate below zero to see the end value of a fall.
Does the CAGR show what will happen next?
No. It describes a past period or a steady assumption. Growth in the future can be higher, lower or negative.
Is my data sent to a server?
No. The calculation and the table run in your browser, and nothing you enter is sent to us.
Sources
Figures and text last checked on Tuesday, November 10, 2026.