CAGR calculator
FinanceNo. 09 / 84
Turn a starting value, an ending value and a number of years into a compound annual growth rate, plus total growth and multiple.
CAGR is the smooth number you show people instead of the bumpy chart.
work surface
Math, not advice — results are indicative.Read the disclaimer.
most-used utilities
Five-year investment
Ten thousand to sixteen thousand over five years: a calm number for a chart that was not calm.
Revenue run
From the first invoice to this year's total, reduced to one annual percentage.
Side project
A thousand users to eight thousand in three years, before anyone calls it a startup.
pro tips
Use the same time span for both values. A three-year CAGR beside a five-year one is a comparison between two different stories.
Negative CAGR is still information. It means the end value sits below the start, not that the calculator broke.
CAGR is a summary, not a forecast. The next five years are under no obligation to match the last five.
what it does
CAGR is the steady yearly rate that would carry a value from where it started to where it ended. Real returns wobble; CAGR draws a straight line through the wreckage and reports the slope.
Enter the starting value, the ending value and the years between them. You get the annual rate, the total growth and the multiple — a 1.6 multiple means the value became 1.6 times itself, which is easier to say at dinner.
It works for revenue, users, followers or a house that looked cheap in 2019. Currency, deposits and the order of events do not matter. That is the point: one number, comparable across very different periods.
The catch is honesty. A fund that rose 40%, fell 20% and rose 10% can share a CAGR with a savings account, even though only one of them caused sleepless nights. Use CAGR to compare journeys, not to describe the weather along the way.
quick answers
What does CAGR actually measure?
The compound annual growth rate: the constant yearly rate linking a starting value to an ending value over a set number of years. It smooths the real path so different periods can be compared.
Can CAGR be negative?
Yes. When the ending value is below the starting value the rate is negative. The total growth and multiple land below one, which is the spreadsheet equivalent of a sigh.
What if my starting value is zero?
CAGR is undefined, because the formula divides by the starting value and takes a root of the ratio. Zero can grow into something, but not at a percentage rate that means anything.