PALLAS / CALCULATOR
CAGR Calculator
Calculate the compound annual growth rate between a starting value and an ending value over a chosen number of years. CAGR expresses the whole change as one equivalent annual compounded rate.
INPUT
Enter values
Method & formula
CAGR answers one question: what constant annual compounded rate would take the starting value to the ending value over the period entered? It smooths the journey between the two points; it does not mean each individual year grew at that rate.
- Growth multiple = ending value ÷ starting value
- CAGR % = ((ending value ÷ starting value)^(1 ÷ years) − 1) × 100
- Total change % = (ending value ÷ starting value − 1) × 100
Example
Growing from 10,000 to 15,000 over three years is a total increase of 50% and a CAGR of about 14.47%.
FAQ
Is CAGR the same as average yearly percentage change?
No. CAGR is the single compounded rate that links the first and last values. An arithmetic average of yearly percentage changes can give a different answer.
Why must the starting value be above zero?
The formula divides the ending value by the starting value. A zero or negative starting value does not produce a meaningful standard CAGR.
Can the ending value be zero?
Yes. A positive starting value that falls to zero produces a CAGR of −100% in this model.