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CAGR calculator
Calculate the constant compounded annual rate between two endpoint values, with total growth, absolute change and growth multiple shown separately.
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No regional currency, unit or language profile is applied. This choice does not convert values or change formulas, results, routes or legal guidance.
Find the constant compounded annual rate that connects a beginning value to an ending value over the elapsed period.
Compound annual growth rate
12.474611%- Total growth
- 80%
- Absolute change
- 8,000 units
- Growth multiple
- 1.8×
- Elapsed time
- 5 years
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Verification and calculation details
- Purpose
- CAGR calculator
- Variables and units
- Use the labelled fields and units shown in the calculator. Results use those units unless a conversion is stated.
- Formula and method
- The exact formula and worked example are shown below. Deterministic formula executed locally in the browser.
- Assumptions
- Only entered values and stated assumptions are included. Local fees, rules and professional requirements are excluded unless explicitly shown.
- Engine version
- 1.0.0
- Production verification baseline
- Release 76 · source
2726979 - Verification run
release-v76-2026-10-20- Last verified
- — Automated release checks passing
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How this calculator works
CAGR = [(ending value ÷ beginning value)^(1 ÷ elapsed years) − 1] × 100. Total growth = [(ending ÷ beginning) − 1] × 100; absolute change = ending − beginning.
Variables and inputs
- Beginning value
- Required numeric input. from 0.01 to 1 billion; must use the same unit as the ending value.
- Ending value
- Required numeric input. from zero to 1 billion; must use the same unit as the beginning value.
- Elapsed time
- Required numeric input. from 0.01 to 100 years; decimal years are supported.
How to interpret the result
The calculator returns compound annual growth rate as a percentage, total percentage growth over the full period, absolute change in the entered unit, ending-to-beginning growth multiple. Read each output against the assumptions you entered, compare alternatives one variable at a time, and use the result as an estimate rather than a promise.
Common mistakes to avoid
- Mixing units or entering a rate as a decimal when the field requests a percentage.
- Rounding intermediate values instead of the final displayed result.
- Leaving out a cost, timing rule or local requirement listed in the assumptions below.
Practical uses
Use the cagr calculator to check a real scenario, compare a changed assumption and explain the arithmetic before relying on a quote, specification or decision.
Worked example
A beginning value of 10,000 and ending value of 18,000 over 5 years produces a CAGR of about 12.4746%, total growth of 80%, an absolute change of 8,000 and a 1.8× growth multiple.
Assumptions and limitations
- the two endpoint values use the same unit and describe comparable measurements
- elapsed time is entered in years and may include a decimal fraction
- the rate is treated as constant and compounded annually only to connect the two endpoints
- full calculation precision is retained before display formatting
- CAGR smooths the path and therefore does not reveal volatility, drawdowns or the timing of intermediate changes
- deposits, withdrawals, distributions, fees, taxes and other intermediate cash flows are excluded
- historical endpoint growth is not a forecast, guaranteed return or investment recommendation
Important notes
Results are estimates based on the values entered. Confirm rates, prices, units and professional requirements that apply in your location. Review the Answer Atlas Calculation Standard and corrections policy for formula, privacy and correction rules.
Frequently asked questions
What does CAGR tell me that total growth does not?
Total growth measures the entire endpoint change. CAGR also accounts for elapsed time by expressing the same endpoint change as one constant compounded annual rate.
Is CAGR the average of each year's percentage return?
No. CAGR is a geometric endpoint rate. It can match the beginning and ending values even when the real annual returns varied substantially.
Can I use decimal years for a partial-year period?
Yes. Enter the elapsed time as a decimal number of years, such as 1.5 for eighteen months, provided the endpoints cover that same period.
Why does a zero ending value produce negative 100% CAGR?
An ending value of zero represents a complete loss of the beginning value. The endpoint growth multiple is zero, so the constant annualized rate is negative 100%.