CAGR Calculator (Compound Annual Growth Rate)

Find the steady yearly growth rate that would take a value from where it started to where it ended over a number of years.

CAGR
Total growth
Growth multiple

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How it works

CAGR smooths out uneven year-to-year changes into one constant annual rate. It's the rate at which the starting value would have to compound each year to reach the ending value.

Because it hides volatility, CAGR says nothing about the ups and downs in between. Use it to compare growth over the same period, not to predict future years.

CAGR = (End value / Start value)^(1 / years) − 1

Worked example

Revenue grew from ₹50 lakh to ₹1.2 crore over 5 years. CAGR = (1,20,00,000 / 50,00,000)^(1/5) − 1 = 2.4^0.2 − 1 = 19.1% a year, while total growth was 140%.

Frequently asked questions

Is CAGR the same as average annual growth?

No. A simple average of yearly growth rates overstates growth when results swing up and down. CAGR is the true compounded rate between the two end points.

Can CAGR be negative?

Yes. If the ending value is below the starting value, CAGR is negative, showing the average yearly decline.

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