CAGR stands for compound annual growth rate. It shows the average yearly growth rate between a starting value and an ending value over a fixed period.

Where is CAGR useful?

CAGR is useful for comparing investments, company revenue growth, ecommerce sales, website traffic and subscriber growth across different time periods.

CAGR Calculator

Measure annualized growth for investments, revenue, users, traffic or any metric that changes over time. Enter any currency or unit and compare periods cleanly.

Investments Business growth International finance

Calculate annual growth

Starting value

Ending value

Period in years

Decimal places

How to read CAGR

CAGR smooths uneven growth into one annual rate. It does not show volatility, but it is useful for comparing options over the same time horizon.

Use it for

Stocks, SaaS MRR, ecommerce revenue, subscribers, app installs and website traffic.

Do not confuse with

Simple average growth, total return or one-year return snapshots.

Formula

CAGR = (Ending Value / Starting Value)^(1 / Years) - 1

The result is shown as a percentage per year. If your value shrank over time, the CAGR will be negative.

FAQ

What is CAGR?

CAGR is the annualized rate that would take a starting value to an ending value over a given number of years.

Can I use CAGR for revenue or traffic?

Yes. It works for any metric with a clear start value, end value and time period.