Calculate compound annual growth rate (CAGR) for investments, revenue, or any business metric. Free calculator with formulas and examples.
CAGR (Compound Annual Growth Rate) measures the mean annual growth rate of an investment over a specified period longer than one year.
Enter the starting value, ending value, and time period to calculate CAGR.
Get our free Excel template with CAGR formulas and growth projection charts.
The CAGR formula provides a single annual growth rate that smooths out volatility over time. Unlike average annual growth rate, CAGR accounts for compounding.
How to calculate CAGR in Excel?
Use the formula: =((End_Value/Start_Value)^(1/Years))-1. Format the cell as a percentage.
What is a good CAGR?
A good CAGR varies by industry. S&P 500 historical average is ~10%. Revenue growth of 15-20% is excellent for mature companies, while startups may have 50-100%+ CAGR.