CAGR Calculator
Calculate the compound annual growth rate between a beginning and ending value — the smoothed yearly rate that turns one into the other over the period.
Inputs
Report details (optional — appears on the PDF report)
Results
Formula
- EV = ending value · BV = beginning value
- n = number of years (months / 12, quarters / 4)
- Result × 100 gives the growth rate as a percentage
How It Works
CAGR answers a simple question: what constant yearly growth rate would take the beginning value to the ending value over this period? It smooths out the ups and downs in between into a single comparable number.
That makes it the standard measure for comparing investments, revenue growth or any metric tracked over different time spans.
Worked Example
Given: Beginning value ₹100,000, ending value ₹250,000, over 7 years
EV/BV = 250,000 / 100,000 = 2.5 · 1/n = 1/7 = 0.142857
CAGR = 2.50.142857 − 1 = 1.13867 − 1 = 13.87% p.a.
Total growth = 150% · Doubling time at 13.87% ≈ 5.3 years
Engineering Notes
- CAGR hides volatility — two investments with the same CAGR can have very different year-to-year paths.
- It assumes no deposits or withdrawals during the period; for cash flows in between, use XIRR.
- Doubling time is computed exactly as ln(2)/ln(1+CAGR), not the Rule of 72 approximation.
- CAGR is undefined if the beginning value is zero or negative.
FAQ
CAGR vs average annual return?
A simple average overstates growth; CAGR accounts for compounding and is the honest figure.
Can CAGR be negative?
Yes — if the ending value is below the beginning value, CAGR shows the annualized rate of decline.
Does CAGR work for revenue or users?
Yes — any metric with a start value, end value and time period.
Related Calculators
This calculator uses established formulas and standard calculation methods to provide reliable results for planning, estimation and reference.