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No. 11Growth & Customers

CAGR Calculator

Find the steady yearly growth rate that takes a value from where it started to where it ended — the clearest way to compare growth across different time periods.

Revenue, customers, portfolio value — any positive measure.

Decimals allowed (e.g. 2.5).

Results

Compound annual growth rate

16.74%

0200K400K600K800K01234Years
Total growth
85.71%
Doubling time at this rate
4.48 years
Show the calculation
  1. Growth multiple780,000 ÷ 420,000= 1.86×
  2. CAGR(1.86)^(1 ÷ 4) − 1= 16.74%
  3. Doubling timeln 2 ÷ ln(1 + 16.74%)= 4.48 years

How it’s calculated

CAGR
equals (Ending Value ÷ Starting Value)^(1 ÷ Years) − 1
Doubling Time
equals ln 2 ÷ ln(1 + CAGR)

CAGR smooths out the ups and downs between the start and end points. It answers: “If growth had been perfectly steady, what yearly rate would have produced this result?”

Worked example

A wholesale business grew revenue from $1.2 million to $2.1 million over three years.

  1. Total growth = $2.1M ÷ $1.2M − 1 = 75%
  2. CAGR = (1.75)^(1/3) − 1 = 20.51%
  3. Doubling time at that rate ≈ 3.72 years

Dividing the 75% total by three years (25%) would overstate the yearly rate, because growth compounds.

For a single-period change, use the Percentage Change Calculator.

Assumptions and limitations

  • Only the start and end values matter. Two businesses with the same CAGR can have very different paths in between.
  • The starting value must be positive. CAGR isn’t meaningful when starting from zero or a negative number.
  • For investments with deposits or withdrawals along the way, CAGR on the account balance is misleading; use a money-weighted return instead.

Results are estimates for information only and are not financial, tax or legal advice. See our disclaimer.