Compound Growth Calculator
Calculate compound annual growth rate (CAGR) and compound growth over time. Track business growth, investments, and population changes.
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Formula
CAGR = ((Ending Value / Beginning Value)^(1/Years)) - 1Example
starting Value:10000
ending Value:15000
years:5
cagr:8.45
Frequently Asked Questions
CAGR (Compound Annual Growth Rate) is the mean annual growth rate over multiple years. Formula: ((Ending / Beginning)^(1/Years)) - 1. Example: $10,000 to $15,000 in 5 years: ((15000/10000)^(1/5)) - 1 = 1.0845 - 1 = 8.45% CAGR.
CAGR accounts for compounding (growth on growth), while simple average doesn't. If you grow 50% then -10%, simple average = 20%, but CAGR considers the actual path. CAGR is more accurate for multi-year analysis.
Multiply current value by (1 + CAGR)^Years. With 8.45% CAGR, $15,000 growing for 3 more years: $15,000 × (1.0845)^3 = $19,127. This assumes growth continues at the same rate.
It depends on context. Stock market: 7-10% is typical, tech startups: 20-40% is good, mature businesses: 3-5% is common. Compare against industry benchmarks and historical performance.
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Visit Learning HubLast updated: 2025-11-13