CAGR Calculator (Annual Growth Rate)
CAGR calculator: compound annual growth rate between a starting and ending value, or the value or time for a given rate.
CAGR = (VendVstart)1/t − 1
How to use this calculator
- Choose the quantity you want under “Solve for”.
- Type the known values and pick their units: any combination works.
- The result updates as you type. Open “Show the steps” to see the substitution.
The compound annual growth rate is the constant yearly rate that takes a starting value to an ending value over a period: CAGR = (end ÷ start)^(1/t) − 1.
It smooths out ups and downs, so it is the fair way to compare investments, revenue or user growth over different time spans.
Results are estimates for information only and do not constitute financial advice. Your lender’s or bank’s figures may differ.
Formula
CAGR = (VendVstart)1/t − 1
| Symbol | Quantity | Units |
|---|---|---|
| Vstart | Starting value | $, €, £ |
| Vend | Ending value | $, €, £ |
| t | Period | years, months |
| CAGR | Compound annual growth rate | %, × |
Worked example
Given: Vstart = 10,000.00 $ · Vend = 19,500.00 $ · t = 5 years
CAGR = (VendVstart)1/t − 1
Result: CAGR = 14.2897 %
Frequently asked questions
What is the CAGR from $10,000 to $19,500 in 5 years?
(19,500 ÷ 10,000)^(1/5) − 1 = 14.29 % a year.
Is CAGR the same as average return?
No. The arithmetic average of yearly returns overstates growth when returns vary; CAGR gives the real compounded rate.