How to use CAGR Calculator
- Enter the beginning value.
- Enter the ending value and the number of years.
- Read the CAGR and the total growth.
About this tool
CAGR is (ending / beginning)^(1 / years) - 1. It smooths uneven growth into one rate, so a business that grew from 100 to 200 in five years has a CAGR of about 14.87%. It does not show volatility between the start and end.
Use it for revenue, users, investments and any metric measured at two dates.
Frequently Asked Questions
- Can CAGR be negative?
- Yes. If the ending value is lower than the beginning value the rate is negative.
- Is CAGR the same as average growth?
- No. A simple average of yearly growth rates ignores compounding and can differ from CAGR.
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