CAGR Calculator
Calculate Compound Annual Growth Rate or project future value. Year-by-year growth table included.
CAGR
14.87%
Start Value
$10,000.00
End Value
$20,000.00
Year-by-Year Growth
What Is CAGR?
Compound Annual Growth Rate (CAGR) is the rate at which an investment would have grown if it grew at a steady rate each year. It smooths out volatility and gives a single annualized figure for comparing investments over different time periods. CAGR is widely used in finance, business, and investing to measure portfolio performance, revenue growth, and market size.
How to Use
- Forward CAGR: enter Start Value, End Value, and Years to get the CAGR %
- Reverse CAGR: enter Start Value, CAGR %, and Years to project the End Value
- The year-by-year table shows the value at each year assuming constant growth
Formula
- CAGR = (End Value / Start Value) ^ (1 / Years) − 1
- End Value = Start Value × (1 + CAGR) ^ Years
FAQ
What is a good CAGR?
It depends on the context. The S&P 500 has historically returned ~10% CAGR. For a startup, 20–30% revenue CAGR is considered strong. For a mature business, 5–10% is healthy.
What is the difference between CAGR and average annual growth rate?
Average annual growth rate (AAGR) is the arithmetic mean of year-over-year growth rates. CAGR is the geometric mean — it accounts for compounding and gives the true annualized return. CAGR is always lower than or equal to AAGR when growth is volatile.
Can CAGR be negative?
Yes. If the end value is less than the start value, CAGR is negative, indicating the investment declined at that annualized rate.