CAGR Calculator: Compound Annual Growth Rate
Calculate the annualised growth rate between any two values, or project what a target CAGR produces over time. Includes benchmark comparison against S&P 500, a 60/40 portfolio, and bonds.
What is CAGR?
Compound Annual Growth Rate (CAGR) is the rate at which an investment or business metric grows from a beginning value to an ending value, assuming the growth compounds annually throughout the period. It is a "smoothed" rate, meaning it represents one constant rate that would produce the same result as the actual year-by-year changes. CAGR is widely used in finance to compare the performance of investments, business revenue, earnings, and user growth over multi-year periods. Unlike a simple average of annual returns, CAGR accounts for the compounding effect and is therefore a more accurate measure of long-term growth. A company growing revenue from $100M to $200M over five years has a CAGR of 14.87%, very different from an arithmetic average that could be distorted by a single large year.
Formula
CAGR = (Ending Value / Beginning Value)^(1 / Years) - 1
Ending Value = Final value of the investment or metric
Beginning Value = Starting value
Years = Number of years between the two values
Reverse (project end value): End = Begin × (1 + CAGR)^Years
Calculator
How to Use
- 1Calculate CAGR mode: Enter the beginning value, ending value, and the number of years. Works for any metric: portfolio value, revenue, earnings, or user count.
- 2Project End Value mode: Switch to "Project End Value" to run the formula in reverse: enter a beginning value, target CAGR, and years to see the projected final value.
- 3Benchmark comparison: After calculating CAGR, the tool shows the spread versus the S&P 500 (10% historical nominal), a 60/40 portfolio (≈7%), and bonds (≈4%). Positive means outperformance.
Worked Example
Example: Revenue growth from $100M to $350M over 8 years
Beginning
$100M
Ending
$350M
Years
8
CAGR = (350/100)^(1/8) - 1 = 3.5^0.125 - 1 ≈ 16.9%. This company grew revenue 3.5× in 8 years at a consistent 16.9% annual rate. The arithmetic average of year-by-year growth rates would give a distorted picture if revenue spiked or dipped in any single year; CAGR smooths that out.
Calculate CAGR from EDGAR Filings
Beat Index members can auto-fill revenue, FCF, or earnings values from SEC EDGAR to instantly compute a company's historical CAGR for any metric.