Calculate compound annual growth rate between a start and an end value over any number of years. Free.
Decimals are fine, for example 2.5.
Enter a starting value, an ending value (both above zero) and the years.
NinjaFunction's CAGR Calculator gives the steady yearly growth rate that takes a value from its start to its end over a number of years. It also shows the total growth and the growth multiple. Use it for investments, sales, subscribers or any figure that grows. It runs in your browser.
| Years to double | CAGR needed |
|---|---|
| 3 | 26.0% |
| 5 | 14.9% |
| 7 | 10.4% |
| 10 | 7.2% |
| 15 | 4.7% |
Say a business has sales of 100, then 150, then 120 in three years. The yearly changes are +50% and −20%, and their average is +15%. But 100 grew to 120 in two years, which is 9.54% a year. Averaging overstates the result because it forgets that the −20% was taken from a bigger number. CAGR measures what actually happened to the starting amount.
A shop made 40 lakh in sales four years ago and made 65 lakh last year. The growth is 62.5% in total, but what was it each year? (65 ÷ 40)^(1 ÷ 4) − 1 = 12.9% a year. That is the number to compare with a competitor, a bank deposit or the shop's own target.
It also works forwards. If you expect 12% a year, 100 today becomes about 176 in five years (1.12 to the power of 5 is 1.762). Planning backwards from a target is the same formula turned round: the CAGR you need is the one that gets you from where you are to the goal in the time you have.
Compound Annual Growth Rate. It is the steady yearly rate that would take a value from its start to its end over the given years, if growth were the same every year.
CAGR = (End value ÷ Start value)^(1 ÷ Years) − 1. For 1,000 growing to 2,000 over 5 years, that is 2^(0.2) − 1 = 14.87%.
A simple average of yearly rates ignores compounding and can mislead. If a value rises 50% and then falls 50%, the average is 0%, yet you have lost a quarter of your money. CAGR gives the true result of +50% then −50%: −13.4% a year.
Yes. It works for anything that grows: sales, subscribers, website visitors, population or portfolio value. It does not matter what the unit is.
The formula needs both values to be above zero, because it takes a root of their ratio. A company that went from a loss to a profit has no meaningful CAGR.
No. Two investments can have the same CAGR, one with steady growth and one with wild swings. CAGR hides the ride along the way.