CAGR Calculator (Compound Annual Growth Rate)
Use this free CAGR calculator to find the compound annual growth rate between any two values. Enter a beginning value, ending value, and number of years to instantly see your smoothed annual growth rate — perfect for revenue growth, investor metrics, and pitch decks.
| Year | Projected Value at CAGR |
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How to Use This CAGR Calculator
- Beginning Value — the starting amount (e.g. revenue in year 1).
- Ending Value — the final amount (e.g. revenue in the last year).
- Number of Years — the number of years between the two values.
What Is CAGR?
CAGR — compound annual growth rate — is the smoothed, constant annual rate at which a value would have grown to get from its starting point to its ending point. It strips out the year-to-year volatility and gives you a single, clean growth rate that is easy to compare across companies, investments, or time periods.
CAGR is the metric investors and founders reach for when describing growth, because raw multi-year growth can be misleading. Going from $100k to $250k is 150% total growth — but spread over four years that is a much more modest 25.7% per year. CAGR answers the question "how fast did this really grow, per year?" which is exactly what matters in a pitch deck, a board update, or an investment comparison.
CAGR Formula
CAGR = ( (Ending Value ÷ Beginning Value) ^ (1 ÷ Years) ) − 1
Multiply by 100 to express it as a percentage. The exponent of 1 ÷ Years is what converts total growth into a per-year compounded rate.
Example Calculation
Revenue grows from $100,000 to $250,000 over 4 years:
- Growth multiple = $250,000 ÷ $100,000 = 2.5×
- CAGR = (2.5 ^ (1÷4)) − 1 = 25.7% per year
So despite 150% total growth, the honest annual growth rate to put in front of investors is about 25.7%.
Common Mistakes to Avoid
- Confusing total growth with CAGR. 150% over four years is not 150% per year — it is about 26%.
- Using the wrong number of years. Count the periods between values, not the number of data points.
- Applying CAGR to volatile data without context. CAGR hides the bumps; a smooth 25% CAGR could include a down year.
- Cherry-picking start and end points. Starting from an unusually low year inflates CAGR misleadingly.
- Forgetting CAGR is backward-looking. Past CAGR does not guarantee future growth.
CAGR for Startups & Founders
CAGR shows up everywhere in startup finance: revenue growth in your pitch deck, user growth in board updates, market-size projections, and investor return expectations. Using it correctly signals financial literacy; using it loosely (or confusing it with total growth) is a credibility risk in front of sophisticated investors.
When we build financial models and investor materials, growth metrics like CAGR are presented accurately and in context — alongside the assumptions that drive them. If you are preparing for a raise or a board meeting and want your growth story to hold up to scrutiny, that is exactly what our financial modeling team does.
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