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CAGR Calculator

“Revenue tripled in five years.” So how fast is that per year? Enter a start and end value to get the compound annual growth rate, or work backwards to a target value or the time it takes.

What CAGR means

CAGR (compound annual growth rate) turns growth over several years into “the steady yearly rate that would get you there.” It’s how you compare growth that zigzags from year to year.

CAGR = (end ÷ start)^(1 ÷ years) − 1

Three modes

  • Find the rate: start, end and years → CAGR
  • Find the end value: start, rate and years → the future value. E.g. “If revenue grows 20% a year, where is it in 5 years?”
  • Find the time: start, end and rate → years needed. E.g. “How long to double at 15% a year?”

Watch out for

CAGR hides the path. A company that crashed and recovered can show the same CAGR as one that grew steadily. The start year matters a lot, so try a few windows. CAGR can’t be computed from a start value of zero or below.