Finance tools
CAGR calculator
Free CAGR calculator, compound annual growth rate calculator, and reverse CAGR calculator for investments and business metrics. Enter beginning value, ending value, and holding period for live annualized return (CAGR %), total growth %, smoothed growth chart, and project ending value mode — then export CSV or PDF. Live results, no submit button.
What CAGR means
CAGR (compound annual growth rate) is the constant yearly rate that would compound a beginning value into an ending value over a given period — assuming profits are reinvested each year at the same rate. It is also called an annualized return when comparing investments with different time horizons.
Investors use CAGR for portfolio comparisons; founders and analysts use revenue CAGR and profit CAGR in board decks and investor updates. CAGR is a smoothed rate — it does not show year-to-year volatility or cash flows inside the period.
Calculate CAGR from endpoints
Enter PV, FV, and years (plus optional months/days) for live CAGR % and total growth.
Reverse CAGR / project FV
Switch to project mode: set a target CAGR % and see the projected ending value.
Smoothed growth chart
Visualize the hypothetical constant-growth path that matches your endpoints.
CSV/PDF export
Download inputs and results for spreadsheets, models, or investor materials.
Related finance tools: compound interest calculator, CAGR calculator, WACC calculator, break-even calculator, and burn rate calculator.
CAGR formula
The standard CAGR formula (also written as the compound annual growth rate formula) is:
CAGR and reverse (project FV) formulas
CAGR = (Ending value ÷ Beginning value)1/n − 1Ending value = Beginning value × (1 + CAGR)n
Where n is the period in years (fractional years when you add months or days). Multiply CAGR by 100 for CAGR %.
To calculate CAGR step by step:
- Divide ending value by beginning value.
- Raise the result to the power of 1 ÷ n (years).
- Subtract 1 and multiply by 100 for a percentage.
Example: $1,000 → $1,300 over 3 years → CAGR = (1300 ÷ 1000)1/3 − 1 ≈ 9.14% (Omni canonical benchmark).
CAGR vs simple growth rate
Simple growth rate (total return divided by start) ignores compounding. CAGR is the geometric average that reflects compounding over multiple years — the rate you need for apples-to-apples comparisons across different holding periods.
| Measure | Formula | $1,000 → $1,300 over 3 years |
|---|---|---|
| Simple growth rate | (FV − PV) ÷ PV × 100 | 30.00% total (not annualized) |
| CAGR | (FV ÷ PV)<sup>1/n</sup> − 1 | 9.14% per year (compounded) |
The same ending value can show a much higher simple growth % than CAGR when growth is back-loaded. Use CAGR when you need one annualized number; use simple growth when you only care about total change over the whole window.
Reverse CAGR calculator (project ending value)
A reverse CAGR calculator answers: “If I grow at X% per year for n years, what is my ending value?” That is the forward solve FV = PV × (1 + CAGR)n — the complement to calculating CAGR from two endpoints.
Use Project ending value mode in the calculator above: enter beginning value, target CAGR %, and period. Example: $100,000 at 8.45% CAGR for 5 years → about $150,020. This covers most “reverse CAGR” searches without a separate URL.
CAGR vs compound interest
A compound interest calculator projects forward from a rate, compounding frequency, and optional contributions. This CAGR tool works from two endpoints (or projects FV from a target rate) — ideal when you only know start value, end value, and years. Different questions; link both when modeling savings vs measuring historical performance.
CAGR vs IRR
IRR (internal rate of return) handles multiple cash inflows and outflows over time. CAGR only needs beginning value, ending value, and period length — so it is simpler but unsuitable when contributions, withdrawals, or irregular timing matter. For SIP-style or DCA schedules, use a compound-interest or IRR model; for “what annualized rate connects these two points?”, use CAGR.
When to use CAGR
CAGR fits when you want one annualized growth number:
- Investment comparison — same start/end dates, different dollar amounts or horizons.
- Revenue or ARR CAGR — company grew from $2M to $5M over 4 years; CAGR smooths that into one yearly rate for decks.
- Fund or index snapshots — price or NAV at two dates with a known holding period.
Avoid relying on CAGR alone when the path was volatile, the period window changes the story, or cash moved in/out during the interval. Pair with risk metrics or an inflation calculator when comparing real purchasing power.
Limitations of CAGR
CAGR assumes steady compounding and hides volatility — two portfolios with the same CAGR can have very different drawdowns. Changing the start or end date can materially change the rate (especially after a crash or spike).
CAGR also ignores contributions and withdrawals (SIP, DCA, dividends taken out). Monthly CAGR or contribution-based growth needs a different model; this tool focuses on classic two-point CAGR and reverse FV projection.
How to calculate CAGR in Excel
To calculate CAGR in Excel or Google Sheets when beginning value is in B1, ending in B2, and years in B3:
=((B2/B1)^(1/B3))-1Format the cell as Percentage. Alternatives:
=POWER(B2/B1,1/B3)-1=RATE(B3,0,-B1,B2)when there are no periodic cash flows
For reverse CAGR (project FV): =B1*(1+CAGR)^B3 with CAGR as a decimal (e.g. 0.0914).
Worked examples
Investment (Omni benchmark): $1,000 growing to $1,300 over 3 years → CAGR ≈ 9.14% (simple growth = 30%).
Business revenue (CalculatorSite pattern): $100,000 to $150,000 over 5 years → CAGR ≈ 8.45%.
Double in 5 years: $1,000 → $2,000 requires about 14.87% CAGR. Try the preset chips in the calculator or project mode to explore. Related: markup calculator, churn rate calculator.
How to use this calculator
Enter beginning and ending values
Choose Calculate CAGR mode and type your starting and ending amounts — or switch to Project ending value (reverse CAGR) and enter a target CAGR % instead.
Set the investment period
Enter full years; open the advanced panel to add months or days for a precise fractional period (years + months/12 + days/365.25).
Review CAGR, chart, and export
See CAGR %, total growth %, absolute change, the smoothed growth chart, and download CSV or PDF when you need to share results.
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Frequently asked questions about this CAGR calculator
How do you calculate CAGR?
Divide ending value by beginning value, raise to the power of 1 ÷ years, subtract 1, and multiply by 100 for a percentage. Example: (1300 ÷ 1000)1/3 − 1 ≈ 9.14%. This calculator applies the formula live as you type.
What is compound annual growth rate (CAGR)?
CAGR is the constant annual growth rate that would compound a starting value into an ending value over n years, assuming reinvestment. It is widely used as an annualized return for investments and revenue CAGR for business metrics.
What is the CAGR formula?
CAGR = (Ending ÷ Beginning)1/n − 1, where n is the period in years. To project ending value (reverse CAGR): FV = PV × (1 + CAGR)n.
Is a CAGR of 7% considered good?
It depends on the benchmark. For long-run US equities, high single digits to low teens is a common historical range before fees and inflation. For startup revenue, 7% may be modest in early hyper-growth stages but strong for mature businesses. Always compare CAGR to peers, risk, and your inflation context.
What CAGR do you need to double in 5 years?
About 14.87% CAGR — because (1.1487)5 ≈ 2. Use Project ending value mode to solve for FV at any target rate.
What is the difference between CAGR and simple growth rate?
Simple growth is (FV − PV) ÷ PV — total change, not annualized. On $1,000 → $1,300 over 3 years, simple growth is 30% while CAGR is 9.14% because compounding applies each year.
What is a reverse CAGR calculator?
It projects future value from a starting amount, CAGR %, and years: FV = PV × (1 + CAGR)n. Use Project ending value mode above — no separate page needed.
Can CAGR be negative?
Yes. When ending value is below beginning value, CAGR is negative — the investment or metric shrank on an annualized basis.
What is the difference between CAGR and IRR?
CAGR uses only start value, end value, and time. IRR fits irregular cash flows (contributions, withdrawals). Use CAGR for two-point comparisons; use IRR or a compound interest model when money moves during the period.
How do I calculate CAGR in Excel?
Use =((End/Begin)^(1/Years))-1 or =POWER(End/Begin,1/Years)-1, then format as percent. For reverse CAGR: =Begin*(1+Rate)^Years. The RATE function works when there are no interim cash flows.