CAGR Calculator
Calculate final value, difference, and total growth from an initial value, CAGR, and number of periods.
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Use this CAGR Growth Calculator to project how a starting value may grow over time when you already know or assume a compound annual growth rate (CAGR). It calculates the final value, total change, total growth percentage, and growth factor.
Important: This calculator projects growth from an entered CAGR. It does not predict future investment or business performance.
CAGR Growth Formula
When the starting value, CAGR, and number of years are known:
Final value = initial value × (1 + CAGR)years
The CAGR percentage must first be converted to decimal form:
CAGR decimal = CAGR % ÷ 100
The change in value is:
Difference = final value − initial value
Total growth over the entire period is:
Total growth % = (final value − initial value) ÷ initial value × 100
The growth factor is:
Growth factor = final value ÷ initial value
Worked Example
Suppose a business, investment, or other value starts at $10,000 and grows at an assumed 7% CAGR for 5 years.
Final value = $10,000 × (1.07)5
Final value ≈ $14,025.52
The total increase is:
$14,025.52 − $10,000 = $4,025.52
Total growth:
$4,025.52 ÷ $10,000 × 100 ≈ 40.26%
Growth factor:
$14,025.52 ÷ $10,000 ≈ 1.4026×
Under a constant 7% annual compound-growth assumption, the starting value would therefore grow by about 40.26% over five years.
How CAGR Is Normally Calculated
If you already know the beginning value, ending value, and number of years, CAGR can instead be calculated as:
CAGR = [(ending value ÷ beginning value)1 ÷ years − 1] × 100
For example, if $10,000 grows to $15,000 in five years:
CAGR = [($15,000 ÷ $10,000)1/5 − 1] × 100 ≈ 8.45%
Important Notes
- CAGR represents a smoothed annual compound growth rate; it does not show the actual year-by-year path.
- An investment can experience gains and losses during individual years even when its overall CAGR is positive.
- For a true CAGR interpretation, use years rather than months, quarters, or other periods.
- The projection assumes the entered CAGR remains constant throughout the full period.
- Additional deposits, withdrawals, dividends, fees, taxes, and other cash flows are not automatically included.
- For investments, CAGR does not measure volatility, risk, or the timing of cash flows.
- Inflation is not included, so the calculator shows nominal rather than inflation-adjusted growth.
- Historical CAGR does not guarantee the same rate of growth in the future.
- When there are multiple deposits or withdrawals at different times, CAGR alone may not accurately represent investment performance.