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VELNARO

CAGR Calculator

CAGR smooths growth over a period into a single annual rate. Enter a starting value, an ending value and the number of years.

CAGR

20.11%

Total growth

150%

Growth multiple

2.5×

Average growth per year

$3,000.00

How this was worked out

  1. Step 1Ratio = 25,000 ÷ 10,000 = 2.5
  2. Step 2CAGR = 2.5^(1 ÷ 5) − 1
  3. Step 3CAGR = 20.11%

CAGR assumes smooth compounding and hides volatility between the two endpoints.

Formula

CAGR = (Ending ÷ Beginning)^(1 ÷ years) − 1

Example

Input

$10,000 → $25,000 over 5 years

Result

20.1% CAGR

Frequently asked questions

Comparing the annualised growth of investments, revenue or users over several years.

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