CAGR Calculator Guide
This CAGR calculator instantly computes the compound annual growth rate for any values over any time period. CAGR is the most widely used metric for measuring consistent growth over time, whether you are analyzing investment returns, business revenue, or any other metric that changes over years.
Unlike simple average growth rates, CAGR accounts for compounding effects and provides the equivalent constant annual rate that would produce the observed total growth. It is the standard for investment performance reporting and business growth analysis.
- 1Total Growth = ($14,000 - $5,000) / $5,000 = 180%
- 2CAGR = ($14,000/$5,000)^(1/7) - 1
- 3CAGR = (2.8)^(0.1429) - 1 = 15.87%
- 4Growth Multiplier = 2.8x in 7 years
- 5Doubling Time = 72 / 15.87 = 4.5 years
- 6Projected value in 5 more years = $14,000 × (1.1587)^5 = $29,327
CAGR Growth Projection Table
| CAGR | 5 Years | 10 Years | 20 Years | 30 Years |
|---|---|---|---|---|
| 5% | $12,763 | $16,289 | $26,533 | $43,219 |
| 8% | $14,693 | $21,589 | $46,610 | $100,627 |
| 10% | $16,105 | $25,937 | $67,275 | $174,494 |
| 12% | $17,623 | $31,058 | $96,463 | $299,600 |
| 15% | $20,114 | $40,456 | $163,665 | $662,118 |
| 20% | $24,883 | $61,917 | $383,376 | $2,373,763 |
How to Use the CAGR Calculator
- CAGR works for any metric: revenue, earnings, users, GDP, portfolio value
- Always use consistent time periods: start and end at the same point in cycles
- CAGR over 10+ years is more reliable than 1-3 year CAGR
- Very high CAGR (30%+) is rarely sustainable for long periods
- Use CAGR with standard deviation for complete risk-return analysis
Businesses use CAGR to set realistic growth targets and projections. If your revenue CAGR has been 15% for the past 5 years, a 15% forward projection is more defensible than a sudden jump to 30%. Investors and lenders expect growth projections aligned with historical CAGR.