Compound Annual Growth Rate (CAGR) Calculator

Growth
Updated Apr 2026 • Has calculator

The steady annual growth rate that takes an investment from its starting value to its ending value over a given period.

Calculate CAGR

Value at the beginning of the period (must be positive)

Value at the end of the period (must be positive)

Number of years in the measurement period

CAGR

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Not investment advice.

What is CAGR?

The compound annual growth rate (CAGR) smooths an investment or business metric's growth into a single annual rate that, if applied consistently every year, would produce the actual observed change over the period. It eliminates the volatility of year-to-year fluctuations, making it the standard tool for comparing growth rates across companies, time periods, and asset classes. CAGR is not an accounting measure — it is a hypothetical constant rate — so it should always be considered alongside actual annual results to avoid being misled by a single exceptional year at the beginning or end of the measurement window.

Formula

CAGR = (End Value ÷ Start Value)^(1 ÷ Years) − 1

Worked Example

Worked example — Apple Inc. (AAPL)

FY2019 – FY2024 (Revenue)

Step 1  Revenue FY2019: $260,174M
Step 2  Revenue FY2024: $391,035M
Step 3  Years: 5
Step 4  CAGR = (391,035 ÷ 260,174)^(1÷5) − 1 = 8.49% per year
Step 5  → Apple’s revenue grew at ~8.5% annually over five years

Source: Apple Annual Reports FY2019 & FY2024 (2024-11-01)

How to Interpret CAGR

< 5
Slow — below long-run equity market average
5 – 10
Moderate — in line with historical market
10 – 20
Fast — above-market growth rate
> 20
Exceptional — high-growth company

📚 FIRE Planning — Complete the path

  1. FIRE Number
  2. Safe Withdrawal Rate
  3. Coast FIRE
  4. CAGR
  5. Rule of 72
Sources
  1. Apple Inc. — Annual Reports FY2019 & FY2024
  2. CFA Institute — Quantitative Methods, 7th ed.
  3. Investopedia — Compound Annual Growth Rate