CAGR Calculator
"Calculate compound annual growth rate (CAGR) quickly with the Free CAGR Calculator. Enter a beginning value, ending value, and number of periods to see your average annual growth — simple, accurate, and instant."
📈 CAGR Calculator — Measure Growth Over Time
Welcome to the Free CAGR Calculator on calculator.cl! Whether you’re evaluating an investment, analyzing business revenue, or comparing performance over multiple years, this tool helps you compute the Compound Annual Growth Rate (CAGR) — the average yearly growth percentage between two values over a defined time period.
No login or signup required — just enter the starting value, ending value, and number of years to get your CAGR instantly!
🧠 What Is CAGR?
Compound Annual Growth Rate (CAGR) represents the average annual growth rate of an investment, revenue stream, or metric over a specified period. Unlike simple growth, CAGR assumes compounding, meaning growth in one period builds upon previous periods.
CAGR is widely used because it smooths out fluctuations and gives a single annual rate that describes overall growth performance.
🧮 CAGR Formula
The formula for CAGR is:
CAGR=(Ending ValueBeginning Value)1Number of Periods−1\text{CAGR} = \left( \frac{\text{Ending Value}}{\text{Beginning Value}} \right)^{\frac{1}{\text{Number of Periods}}} - 1CAGR=(Beginning ValueEnding Value)Number of Periods1−1
Where:
Beginning Value: the value at the start of the period
Ending Value: the value at the end of the period
Number of Periods: number of years (or other time units)
Results are shown as a percentage to represent the average annual growth.
🧠 How It Works
To use the CAGR Calculator:
Enter the beginning value (e.g., initial investment).
Enter the ending value (e.g., final value after years).
Enter the number of periods (usually years).
Click Calculate.
The tool calculates the CAGR using the formula and displays the result as a percentage.
📊 Example Calculation
Suppose you invested money and it grew from $5,000 to $8,000 in 3 years:
CAGR=(8,0005,000)13−1=(1.6)0.3333−1≈1.1689−1≈0.1689=16.89%\text{CAGR} = \left( \frac{8,000}{5,000} \right)^{\frac{1}{3}} - 1 = (1.6)^{0.3333} - 1 ≈ 1.1689 - 1 ≈ 0.1689 = 16.89\%CAGR=(5,0008,000)31−1=(1.6)0.3333−1≈1.1689−1≈0.1689=16.89%
Your investment grew at an average rate of approximately 16.89% per year.
📍 Why CAGR Matters
CAGR is useful because it:
Shows consistent average growth over multiple periods
Helps compare performance of different investments
Smooths out annual volatility
Works for revenue, user growth, portfolios, and other metrics
It gives a clear picture of long‑term performance.
💡 Tips for Best Results
Use real beginning and ending values for accurate insights.
For shorter periods (like months), convert to yearly terms if needed.
Compare CAGR with other metrics like annual returns or ROI for deeper analysis.
⚠️ Important Notes
CAGR assumes consistent growth — actual values may vary year‑to‑year.
This tool gives the average rate — not the exact annual performance each year.
TO USE THIS TOOL VISIT https://calculator.cl/cagr-calculator/ OR SCAN THIS QR CODE.
