» CAGR Calculator

What is CAGR?
CAGR means compound annual growth rate. It is the constant annual rate that would take a beginning value to an ending value over a selected period, assuming growth is compounded.

What is the CAGR formula?
The standard formula is CAGR = (EV / BV)^(1 / n) - 1, where BV is beginning value, EV is ending value, and n is the number of years.

How do I calculate ending value from CAGR?
Use EV = BV × (1 + CAGR)^n. For example, a beginning value of 1000 growing at 9.14% for 3 years becomes about 1300.

Can CAGR be negative?
Yes. If the ending value is lower than the beginning value, CAGR is negative. That means the value declined at a smoothed annual compound rate over the selected period.

What is the difference between CAGR and total growth?
Total growth shows the full percentage change from beginning value to ending value. CAGR annualizes that change, so it shows the smoothed yearly rate needed to produce the same final value.

When is CAGR useful?
CAGR is useful for comparing investments, revenue, market size, customer counts, or other values over different time periods. It makes uneven growth easier to compare by converting it into one annualized rate.

What are CAGR limitations?
CAGR smooths the path between beginning and ending values. It does not show volatility, interim losses, irregular cash flows, deposits, withdrawals, fees, taxes, or risk. For cash-flow investments, IRR may be more appropriate.