Accounting Share · Profit, pricing & growth
Compound Annual Growth Rate Calculator
Find the constant annual compound growth rate connecting a positive beginning value to a positive ending value.
The interactive calculator requires JavaScript. The formula and worked example below remain available.
01 / Enter your figures
Make the numbers yours.
Use one currency and consistent time periods. Amounts are shown in your input currency units; no currency conversion is performed.
02 / See the working
Your calculation
Enter your figures, then choose Calculate. Or load the worked example.
03 / Understand the method
Formula and method
(Ending value ÷ Beginning value)^(1 ÷ Years) − 1
Find the constant annual compound growth rate connecting a positive beginning value to a positive ending value.
How to use this calculator
- Collect the figures for the same entity, currency and reporting period.
- Enter each input using its label and unit. For percentages, enter 15 to mean 15%.
- Choose Calculate, inspect the breakdown and compare the result with your assumptions.
- Change one input to explore a scenario. Recalculate after edits; display rounding does not round the underlying calculation.
Inputs at a glance
- Beginning value: A nonnegative numeric input in the units specified by the label.
- Ending value: A nonnegative numeric input in the units specified by the label.
- Number of years: A nonnegative numeric input in the units specified by the label.
Worked example
Follow one calculation.
- Beginning value
- 100
- Ending value
- 121
- Number of years
- 2
- Calculated result
- 10%
Load this example in the interactive form to inspect the intermediate amounts.
Assumptions and interpretation
CAGR smooths fluctuations and is not an average of annual percentage changes. It does not measure investment performance correctly when intermediate contributions or withdrawals occur.
The output is a model based on the figures entered. Check source records and use the accounting or contractual definitions relevant to your task before relying on a result.
Questions about this tool
What does the compound annual growth rate calculation measure?
Find the constant annual compound growth rate connecting a positive beginning value to a positive ending value.
Which assumptions can change the result?
CAGR smooths fluctuations and is not an average of annual percentage changes. It does not measure investment performance correctly when intermediate contributions or withdrawals occur.
Why can displayed totals differ slightly from my spreadsheet?
Calculations use the unrounded input values. Only the display is rounded. Use four or six decimal places to inspect small differences, and check the timing, sign conventions and rounding policy in your spreadsheet.
Reference and further learning
Financial accounting reference. These original learning examples apply the displayed formula; the reference does not certify or endorse this calculator.
Look up an accounting term · Practise with accounting questions
Formula and worked example checked 4 November 2026. Calculations run in your browser without sending the entered figures to Accounting Share. Report a calculation issue with the tool name, example inputs and expected result; avoid sharing confidential records.
