CAGR Calculator

Calculate the compound annual growth rate between two values.

Growth Inputs

Calculate the compound annual growth rate between two values.

Initial Value

Final Value

Number of Years

CAGR Result

Your compound annual growth rate calculation.

—

CAGR

—

Total Growth

Year-by-Year Projection

Growth progression from initial to final value.

Enter valid inputs to see the year-by-year projection.

Tips

CAGR smooths returns but doesn't show volatility. Always check the underlying trend.
A 20% CAGR over 5 years means your investment roughly quadrupled.

What Is CAGR?

CAGR stands for Compound Annual Growth Rate. It measures the mean annual growth rate of a value over a specified period longer than one year, assuming the growth compounds each year. Unlike a simple average of year-over-year growth rates, CAGR smooths out volatility and gives you a single number that represents steady growth from the starting value to the ending value.

The formula is straightforward: CAGR = (Final Value / Initial Value) ^ (1 / Number of Years) - 1. For example, if your revenue grew from $100,000 to $250,000 over 5 years, your CAGR would be 20.1% — meaning your business grew at an equivalent rate of 20.1% per year, even if individual years varied wildly.

Why CAGR Matters for Growth Marketing

CAGR is the standard metric for comparing growth across different time periods, business units, or competitors. When a startup says it is growing at 30% CAGR, investors and marketers immediately understand the trajectory. It is more meaningful than total growth (which ignores the time dimension) and more stable than year-over-year growth (which can swing dramatically).

For growth marketers, CAGR helps you set realistic targets, benchmark against industry norms, and communicate results to stakeholders. If your organic traffic CAGR is 15% but your competitor is at 40%, that gap tells a clear story. It also helps you model future projections — a 25% CAGR means you will roughly double every 3 years.

How to Use This CAGR Calculator

Enter your initial value (the starting number), your final value (the ending number), and the number of years between them. The calculator returns your CAGR as a percentage, total growth over the full period, and a year-by-year projection table showing how the value compounds at that rate.

You can use this for revenue, traffic, user counts, ARR, or any metric that grows over time. The year-by-year table is especially useful for financial modeling and board presentations — it shows exactly how compounding builds value over each period. Copy the result to paste into reports or spreadsheets.

CAGR vs Simple Growth Rate

A simple growth rate divides the total change by the number of periods. If revenue went from $100K to $200K over 4 years, the simple average growth rate is 25% per year ($100K total change / 4 years / $100K starting value). But this ignores compounding entirely. The actual CAGR is 18.9%, because each year's growth builds on top of the previous year's larger base.

The difference matters more as numbers get larger and time periods get longer. Over 10 years, a 20% CAGR turns $100K into $619K, while a 20% simple growth rate would suggest only $300K. Always use CAGR when you need an accurate picture of compounding growth — which is how real businesses actually grow.

Frequently Asked Questions

What is a good CAGR?

It depends entirely on your industry and stage. For SaaS startups, a 40-100% revenue CAGR is considered strong in early years, while 20-30% is healthy for mature companies. For organic traffic, 15-25% CAGR is solid for established sites. The S&P 500 has historically returned roughly 10% CAGR. Compare against your specific industry benchmarks rather than using a universal number.

How is CAGR calculated?

CAGR = (Final Value / Initial Value) ^ (1 / Number of Years) - 1. The formula takes the ratio of final to initial value, raises it to the power of 1 divided by the number of years, and subtracts 1 to express the result as a growth rate. This gives you the constant annual rate that would take you from the initial value to the final value over the given period.

Can CAGR be negative?

Yes. If your final value is lower than your initial value, CAGR will be negative, indicating a decline. For example, if traffic dropped from 100,000 to 60,000 over 3 years, the CAGR would be approximately -15.6%. A negative CAGR is a clear signal that something needs attention — whether it is a market shift, competitive pressure, or a strategy problem.

What is the difference between CAGR and average growth rate?

Average growth rate is the arithmetic mean of individual year-over-year growth rates. CAGR is the geometric mean — the single rate that accounts for compounding. Average growth rate can be misleading because it does not account for the order or compounding of returns. A company that grows 100% in year one and shrinks 50% in year two has a 25% average growth rate but a 0% CAGR — accurately reflecting that it ended where it started.

When should I use CAGR instead of other growth metrics?

Use CAGR when comparing growth over periods longer than one year, when you need to smooth out yearly fluctuations, or when communicating growth to investors and executives. Use year-over-year (YoY) growth when you need to see recent momentum or seasonal patterns. Use month-over-month (MoM) growth for short-term operational decisions. CAGR is the best metric for long-term trend analysis and strategic planning.

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CAGR Calculator

Calculate the compound annual growth rate between two values.

Growth Inputs

Calculate the compound annual growth rate between two values.

Initial Value

Final Value

Number of Years

CAGR Result

Your compound annual growth rate calculation.

—

CAGR

—

Total Growth

Year-by-Year Projection

Growth progression from initial to final value.

Enter valid inputs to see the year-by-year projection.

Tips

CAGR smooths returns but doesn't show volatility. Always check the underlying trend.
A 20% CAGR over 5 years means your investment roughly quadrupled.

What Is CAGR?

Why CAGR Matters for Growth Marketing

How to Use This CAGR Calculator

CAGR vs Simple Growth Rate

Frequently Asked Questions

What is a good CAGR?

How is CAGR calculated?

Can CAGR be negative?

What is the difference between CAGR and average growth rate?

When should I use CAGR instead of other growth metrics?

Related Tools

A/B Test Calculator

Calculate statistical significance between two test variants to validate your experiments.

Percentage Calculator

Calculate percentage changes, differences, and ratios for quick marketing math.

Funnel Generator

Map your full marketing funnel from awareness to conversion with content and metrics.