CAGR Calculator

Free CAGR calculator: find compound annual growth rate, beginning value, or ending value. See the formula and a worked example for how to calculate CAGR.

CAGR stands for compound annual growth rate — sometimes searched for as “cumulative annual growth rate,” though compound is the correct term. It is the constant annual rate that turns a beginning value into an ending value over a chosen number of years, smoothing out year-to-year ups and downs into one comparable number.

This calculator solves for whichever value you don’t know: enter beginning value, ending value, and years to find CAGR, or enter CAGR and years with either value to solve for the other.

The formula is CAGR = (EV / BV)^(1 / n) − 1, where EV is ending value, BV is beginning value, and n is the number of years. For example, an investment growing from $1,000 to $1,300 over 3 years has a CAGR of about 9.14% — the single annual rate that would produce the same growth if compounded every year.

Average annual growth rate (AAGR) is a simple average of each year’s percentage change, which ignores compounding. CAGR accounts for compounding by using only the beginning and ending values, so it better reflects the actual annual rate needed to get from one to the other — which is why CAGR is the standard way to compare investments, revenue, or user growth across different time periods.