7 Confidence Checks: CAGR Calculator (Compound Annual Growth)
Calculate compound annual growth rate (CAGR) to understand average yearly growth over time.
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What Is This Tool?
This CAGR Calculator helps you find the average yearly growth rate between a starting value and an ending value. It’s especially useful when growth happens unevenly—some years up, some years down—but you still want one clean “per year” number to compare performance.
How This Tool Works (Simple Explanation)
- You enter the value you started with (beginning value).
- You enter the value you ended with (ending value).
- You add how many years it took to get there.
- The calculator applies the CAGR formula to find the average compound growth per year.
- You get the result instantly, along with a quick summary of total growth.
Why You Should Use This Tool
When you look at growth over time, raw numbers can be misleading. Going from 10,000 to 18,000 sounds great—but is that over 2 years or 10 years? CAGR fixes that. It gives you a fair, apples-to-apples growth rate that’s easy to compare across investments, business revenue, savings goals, or even portfolio performance.
Step-by-Step How to Use
- Choose your currency (just for display).
- Type your beginning value.
- Type your ending value.
- Enter the number of years in between.
- Click Calculate CAGR to get your yearly growth rate.
Benefits
- Turns “start vs end” numbers into a clear yearly growth rate.
- Makes it easy to compare two investments fairly.
- Helps you understand performance even when growth is uneven.
- Works for business revenue, savings, portfolios, or any value change.
- Simple inputs—no complicated settings.
- Mobile-friendly design that’s easy to use on any device.
- Supports popular currencies so global visitors feel comfortable.
- Shows extra context like total growth and growth multiple.
Use Cases
- Comparing two investments that grew over different time periods.
- Checking how fast a business revenue number grew year-over-year.
- Reviewing long-term stock, mutual fund, or ETF performance.
- Measuring how savings increased over a set number of years.
- Comparing your portfolio growth with a benchmark index.
- Evaluating how property value changed over time.
- Summarizing growth for reports, pitches, or presentations.
- Planning future goals by understanding past growth patterns.
Features
Clean, simple inputs: Just enter beginning value, ending value, and years—nothing extra that slows you down.
Accurate CAGR formula: Uses the standard compound annual growth rate equation that’s widely accepted in finance.
Extra context included: You’ll also see total growth and the growth multiple, so the result makes sense at a glance.
Global-friendly display: Choose a popular currency so values look familiar for visitors from different countries.
Mobile-first layout: Comfortable spacing, readable text, and buttons that are easy to tap on small screens.
FAQs
1) What does CAGR actually tell me?
CAGR tells you the average growth per year as if the value grew at a steady compounded rate—even if real growth was messy. It’s a great comparison tool.
2) Is CAGR the same as average return?
Not exactly. A simple average return doesn’t account for compounding the same way. CAGR is usually more realistic for multi-year comparisons.
3) Can CAGR be negative?
Yes. If your ending value is lower than the beginning value, the CAGR will be negative, showing an average yearly decline.
4) What if my beginning value is 0?
CAGR can’t be calculated with a starting value of 0 because you can’t divide by zero. Use a small positive value or review the data source.
5) What “years” should I use?
Use the exact number of years between your start and end points. If it’s not a whole number, you can enter decimals like 2.5.
6) Does currency affect the CAGR result?
No. Currency is only for display. CAGR depends on the ratio between ending and beginning values, not the symbol.
Related Tools
If you’re comparing growth across time, a Compound Interest Calculator can help you project future value. For investment performance, a ROI Calculator is useful for simple profit-based results. And if you’re reviewing inflation impact, an Inflation Calculator can show the real value change over time.
SEO-Optimized Conclusion
Want a quick and clear way to measure growth over time? Use this CAGR Calculator to find your compound annual growth rate in seconds. It’s simple, accurate, and works for investments, savings, revenue, and more—try it now and compare your results confidently.