CAGR Calculator
Measure the steady yearly growth rate between two values.
How this calculator works
CAGR = (ending value / starting value) ^ (1 / years) – 1. It smooths out the ups and downs of an investment, revenue or user count into one steady annual rate, which makes different options easy to compare.
Frequently asked questions
Is CAGR the same as average annual return?
No. An average of yearly returns ignores compounding, while CAGR shows the single steady rate that turns the start value into the end value.
Can CAGR be negative?
Yes. If the end value is lower than the start value, CAGR is negative.
What are the limits of CAGR?
It hides volatility between the start and end dates and says nothing about future results.
