CAGR (Compound Annual Growth Rate) Calculator

How to Calculate CAGR

This calculator calculates the growth of something based on its CAGR, it does not calculate the CAGR based on an initial and ending value. With that cleared up, here is the formula that is used to calculate the end value of something based on its CAGR:

• EV = Ending value


• IV = Initial value

Ending Value = Initial Value * (1 + (CAGR / 100))^Periods

If you wanted to calculate the CAGR based on a starting and ending balance, you can use this formula:

CAGR = (Ending Value / Beginning Value)^{(1 / No. of Periods)} – 1

Why CAGR is Important

CAGR is often referred to as one of the best ways to accurately determine the return or growth of an investment, balance, industry, or anything that can rise or fall over time.

How to Use the CAGR Calculator

Our CAGR tool is very easy and simple to use, the steps include:

1. Enter the CAGR percent. Do not include the percent symbol, only enter the number. For example, 7% CAGR should just be entered as 7.
2. Enter the number of periods. This is the number of years, as the A in CAGR stands for annual.
3. Enter the initial value that you are starting with.
4. Hit calculate and get the ending value in seconds!

Calculation Example

Let's say you want to see how much your $100,000 investment portfolio would be valued at in 5 years based on a CAGR of 7.5%. Your formula would look like this: Ending Value = 100,000 * (1 + (7.5 / 100))⁵. At the end of 5 years your portfolio would be valued at about $143,562.93.

CAGR can also be used to forecast the growth of an industry. For example, let's say we read a report that the tech-infused pencil market is valued at $50 million currently, and is expected to grow over the next 10 years with a CAGR of 6.7%. After plugging these values into the appropriate fields we would come to find that after 10 years the tech-infused pencil market is worth about $95,634,413.