Find the compound annual growth rate — the steady yearly rate that takes a starting value to an ending value — plus the total growth.
CAGR = (ending ÷ starting)^(1/years) − 1. It's the constant annual rate that connects the two endpoints — it smooths over the ups and downs in between, so it's not the actual return in any single year. General information only.
Compound annual growth rate is the single steady rate that would grow your starting value to your ending value over the period. It's the fairest way to compare investments or business metrics with different time spans, because it annualizes everything — but remember it hides the volatility of the actual path.
CAGR = (ending ÷ starting)^(1 ÷ years) − 1
A simple average of yearly returns overstates growth when there's volatility. CAGR is the true compounded rate — it accounts for the fact that a 50% loss needs a 100% gain to recover.
Yes — CAGR works for any value that grows over time: revenue, users, portfolio value. It's a standard way to state growth in one clean number.
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Last reviewed: September 2026. Free to use, no signup — CAGR Calculator by ToolWise Digital.
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