Find the compound annual growth rate between a starting value and an ending value over any number of years. Free.
CAGR is the compound annual growth rate. It is the single constant rate that would take the starting value to the ending value over the duration you enter. It is one rate, not an average.
CAGR = ((ending value / starting value)^(1 / years) - 1) * 100
The ratio of the two values is raised to the power of one divided by the number of years, which undoes the compounding. Subtracting 1 turns the growth factor into a rate, and 100 turns it into a percentage.
The absolute change is plain subtraction: the ending value minus the starting value. It is not compounded and it does not depend on the duration.
Both values must be greater than zero. A starting value of zero has no growth rate, because the formula divides by it. A negative value makes the ratio negative, which has no real root. The duration can be a fraction of a year.
Amounts follow the currency and the number format you choose in settings. The calculation runs in your browser.
The compound annual growth rate is 14.87 percent and the absolute change is 100,000.00.
The same doubling over a different term gives a different rate. Over 7 years it is 10.41 percent, and over 10 years it is 7.18 percent. The amount gained is 100,000.00 in all three cases, which is why the absolute change alone tells you little.
The growth rate is −10.37 percent and the absolute change is −70,000.00. A fall gives a negative rate, and the formula needs no separate mode.
Because gains and losses compound. Take 100,000 that rises by half in one year and then loses half in the next. It ends at 75,000, and the calculator reports −13.40 percent over 2 years. The two yearly changes average to zero, but the money did not stay level. A loss removes more than the same percentage gain puts back, because the loss applies to a larger balance.
No. It reads two numbers and a duration. A value that climbed steadily and one that crashed and recovered give the same CAGR if they start and end at the same place on the same date. Nothing about the path survives the calculation.
Yes. 850,000 to 1,420,000 over 6 years is 8.93 percent. The same change over half a year is 179.09 percent, because the calculator states the rate a full year at that pace would give.
Use the Future Value Calculator. 100,000 at 12 percent for 5 years gives 176,234.17, and feeding 100,000 and 176,234.17 back into this page over 5 years returns 12.00 percent.
The starting value is the divisor, so zero has no answer. The ratio is raised to a fractional power, and a zero or negative ratio has no real result. The calculator says Starting value must be greater than zero. or Ending value must be greater than zero. and stops.
No. There is no account, nothing you type is sent to a server, and no result is written down. The page works with no internet connection.
CAGR answers one question. At what steady pace would the starting value have to grow to reach the ending value.
The rate is shown to the decimal precision set in settings, so it is a rounded figure. Enter 14.87 percent into the Future Value Calculator for 5 years and 100,000 becomes 200,001.43 rather than exactly 200,000. The extra 1.43 is the rounding, not an error.
For a growth rate applied to a monthly plan instead of a single amount, use the SIP Calculator.