12.47% is the example result. CAGR is the constant compounded rate connecting the endpoints over the stated years. It does not describe the volatility or intermediate cash flows.
CAGR is the constant compounded rate connecting the endpoints over the stated years.
Comparing financial amounts on a defined basis
CAGR is the constant compounded rate connecting the endpoints over the stated years. It does not describe the volatility or intermediate cash flows. A financial model is useful when its cash amounts, rate convention and time horizon describe the same case. Interest, return and purchasing power are different outputs. A projection should remain separate from an observed or audited balance.
Source and result record
For cagr, retain Starting value, Ending value, Years together with the output. Record the date of the source values and the unit convention used in the form. That record separates a change in the underlying case from a change in how the information was entered. A saved result without its source values cannot show which assumption produced it.
Example with the supplied inputs
Starting value: 100000; Ending value: 180000; Years: 5. Result: 12.47%. The values are illustrative.
Compare one changed input
Starting value changes from 100000 to 110000. The result becomes 10.35%. All other inputs remain fixed.
Calculation rule
Result = (((([Ending value]) ÷ ([Starting value])))^(((1) ÷ ([Years]))) − 1) × 100
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Starting value | 100000 | Use the source quantity represented by starting value. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Ending value | 180000 | Use the source quantity represented by ending value. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Years | 5 | Use the duration unit stated in years. A time period is not interchangeable with a currency amount or a count of events. |
Output: 12.47% is the example result. CAGR is the constant compounded rate connecting the endpoints over the stated years. It does not describe the volatility or intermediate cash flows. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Starting value, Ending value, Years. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Starting value on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 12.47%.
Change Starting value from 100000 to 110000 while keeping every other value fixed. The result becomes 10.35%. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026