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CAGR & Compound Growth Rate Calculator

Calculate compound annual (CAGR), quarterly or monthly growth between two values, project a value forward at a fixed rate, or find how long a target takes.

Calculated entirely in your browser — nothing you enter here is sent to a server.

How compound growth is calculated

The compound annual growth rate (CAGR) is the steady yearly rate that would turn a starting value into an ending value over a number of years. The same formula gives a compound monthly growth rate (CMGR) when the periods are months, or a quarterly rate for quarters.

  • Rate per period = (end ÷ start)^(1 ÷ periods) − 1
  • Annualised rate = (1 + rate per period)^(periods per year) − 1
  • Projected value after n periods = start × (1 + rate)^n
  • Periods to reach a target = ln(target ÷ start) ÷ ln(1 + rate)

Worked examples

  • Revenue grows from 100,000 to 250,000 over 5 years: (250,000 ÷ 100,000)^(1/5) − 1 = 20.11% CAGR. Total growth is 150%, and the equivalent steady monthly rate is 1.54%.
  • MRR grows from 1,200 to 4,800 over 18 months: a compound monthly growth rate of 8.01%, which compounds to 152% a year.
  • 10,000 growing at 8% a year for 5 years reaches 14,693.28.
  • At 7% a year, a value doubles in 10.24 years.

Reading the result

  • CAGR smooths the path. Two businesses with the same start and end values have the same CAGR even if one grew steadily and the other fell and recovered.
  • Don't average yearly growth rates instead: +50% followed by −50% averages 0%, but the value ends 25% lower, a CAGR of −13.4%.
  • Projections assume the rate holds every period. Treat them as scenarios, not forecasts.
  • Compounding a short-term monthly rate into a yearly figure can look dramatic; check it against what is realistic for your market.

Limitations

  • Start and end values must be positive. Growth from zero, or between negative values such as losses, has no compound rate.
  • CAGR ignores money added or withdrawn along the way. For investments with contributions, use a money-weighted return instead.

For subscription businesses, pair growth with retention in the churn and revenue retention calculator, and with unit economics in the LTV calculator. For a single change between two numbers, use the percentage calculator.

How to use the CAGR & Compound Growth Rate Calculator

  1. Choose Growth rate (CAGR) to find the steady rate between two values, Project growth to see where a value ends up, or Time to target to see how long a goal takes.
  2. Pick the period length: years for CAGR, months for a compound monthly growth rate (CMGR), or quarters.
  3. Enter the starting value and the ending value, rate or target, plus the number of periods where asked.
  4. Read the rate per period, total growth and annualised or monthly equivalent, or the projection table.
  5. Copy the summary, or copy or download the projection as CSV.

Example: Five years of revenue growth

Revenue rose from 100,000 to 250,000 over 5 years. (250,000 ÷ 100,000)^(1/5) − 1 gives a CAGR of 20.11%, total growth of 150%, and an equivalent steady monthly rate of 1.54%. At 7% a year, any value takes 10.24 years to double.

Questions about the CAGR & Compound Growth Rate Calculator

What is the difference between CAGR and average growth?
CAGR is the single steady rate that links the start and end values. Averaging yearly growth rates overstates it: +50% then −50% averages 0%, yet the value ends 25% lower, a CAGR of −13.4%.
How do I calculate a compound monthly growth rate (CMGR)?
Set the period length to months and enter the number of months between the two values. The calculator shows the monthly rate and what it compounds to over a year.
Why can't I use zero or negative values?
Compound growth divides the end value by the start value and takes a root. That is undefined when the start is zero and meaningless when either value is negative, such as moving from a loss to a profit.
Does a projection predict future growth?
No. It shows what happens if the same rate holds every period. Real growth varies, so treat projections as scenarios.
Can I use it for investment returns?
Only when no money is added or withdrawn between the start and end values. With contributions or withdrawals, a money-weighted return gives a fairer picture.