Calculate Compound Annual Growth Rate (CAGR)

CAGR stands for compound annual growth rate. It is the constant annual compounded rate that connects a beginning value to an ending value over a stated number of years.

CAGR = (ending value ÷ beginning value)^(1 ÷ years) − 1. Multiply the decimal result by 100 to express it as a percentage.

CAGR is a geometric annual average that compounds to the observed ending value. A simple arithmetic average of yearly percentages can differ because it does not capture compounding.

Yes, for a beginning value, ending value, and period with no unadjusted external cash flows. Other annualized-return methods may use periodic returns or dated cash flows and can answer a different question.

There is no universal good CAGR. The answer depends on what is measured, the period, risk, volatility, dividends, inflation, valuation, business quality, and the benchmark. CAGR is a description of endpoints, not a verdict.

Yes. When the ending value is below the positive beginning value, CAGR is negative. An ending value of zero produces −100%; a negative ending value is outside the standard real-valued formula used here.

Use values measured on the same basis and at comparable dates. For stock performance, decide whether your series includes dividends and split adjustments. For a company metric, keep the reporting period and accounting definition consistent.

No. CAGR is based on a ratio, so any consistent positive unit works: dollars, euros, share price, revenue, EPS, subscribers, or another metric. Beginning and ending values must use the same unit and scale.

Yes. Enter decimal years: 18 months is 1.5 years, 30 months is 2.5 years, and nine months is 0.75 years. Use an exact day-count method elsewhere when precise date conventions materially matter.

Use the elapsed time between the beginning and ending observations. Five annual observations can span only four year-to-year intervals, so count the actual elapsed period rather than the number of labels in a table.

No. CAGR divides ending value by beginning value, so a zero beginning value makes the ratio undefined. Use an absolute-growth measure or another model for growth from zero.

Not with this standard real-valued formula. A negative endpoint can make roots undefined or economically meaningless. Show the raw change and analyze the turnaround or deterioration by period instead.

Yes. Enter both endpoints in millions, both in thousands, or both as full values. Because the formula uses their ratio, a consistent scale produces the same CAGR.

Divide ending value by beginning value, raise that growth multiple to the power of one divided by elapsed years, subtract one, then multiply by 100 for a percentage.

If 100 grows to 150 in five years, calculate (150 ÷ 100)^(1 ÷ 5) − 1. The result is about 0.0844718, or 8.44718% per year.

Total return is the entire percentage change between the two endpoints. CAGR converts that change into an equivalent compounded rate per year, so it also depends on the elapsed time.

No, except as a rough approximation for very small rates and short periods. Compounding is nonlinear. Use (1 + CAGR)^years − 1 to recover total return.

Use (1 + annual CAGR)^(1 ÷ 12) − 1. Do not simply divide by 12 when you need a compounding-equivalent monthly rate.

Use =(ending/beginning)^(1/years)-1. Excel's RRI function is another equivalent-rate method: RRI(number_of_periods, present_value, future_value). Format the result as a percentage.

Check the exact elapsed period, whether one tool counts observations instead of intervals, whether percentages were rounded before compounding, and whether the other calculation uses monthly or daily periods. CalcStocks keeps full precision until display.

Use the adjusted beginning and ending prices and the elapsed years when you want corporate actions reflected. A raw price CAGR usually omits cash dividends and therefore is not the shareholder's total return.

Only if the values you enter already include reinvested dividends, such as a suitable total-return or adjusted series. Entering two unadjusted closing prices excludes cash distributions.

Use split-adjusted values. A split changes shares and price proportionally without changing total position value; mixing an unadjusted pre-split price with a post-split price creates a false decline.

Yes, when beginning and ending revenue use comparable periods, currency, consolidation scope, and accounting definitions. Acquisitions, divestitures, restatements, and currency translation can still make the growth less comparable.

Yes when both EPS endpoints are positive and consistently defined. Basic versus diluted EPS, continuing operations, adjusted metrics, buybacks, and negative EPS can make a simple endpoint CAGR misleading or undefined.

No. Align the period and return definition first, then consider volatility, drawdowns, dividends, fees, taxes, valuation, business risk, and whether the endpoint values are representative. CAGR alone hides the path.

Not with the simple endpoint formula. Contributions increase ending value without being investment performance. Use a dated cash-flow return such as money-weighted return, or a time-weighted series that neutralizes external flows.

No. CAGR uses only the beginning value, ending value, and time. It cannot reveal interim losses, recovery time, sequence risk, or whether most growth occurred in one year.

No. Reusing a past CAGR is a projection assumption, not a forecast. Prices, earnings, valuation, competition, capital allocation, economic conditions, and risk can all change.

No. The calculation runs in your browser and inputs are not sent, logged, or stored. A copied share link contains the three values in its URL, so anyone receiving that link can read them.

No. It is transparent arithmetic on visitor-entered endpoints. It does not verify data, assess a security, model cash flows or risk, forecast performance, or recommend an investment.