Alp SuleimanGrowth Partner

CAGR Calculator

If revenue grew 2.25× in three years, how fast is that per year? CAGR gives a single annual rate. In Target mode the real question is this: how much higher is the pace you need than the pace you have sustained so far? Enter your past pace and see the gap in percentage points.

Tool 12 / 15

CAGR Calculator

Inputs

Calculate

Values

Revenue, users, ARR… Currency doesn't matter as long as both values use the same unit.

Period

Period unit

yrs
yrs

How many years ahead at the same pace?

Result

Compound annual growth (CAGR): +31%

Compound annual growth (CAGR)

+31%

Average compound rate per year over 3 years

Total growth

+125%

Multiple

2.25×

Time to double

2.6 yrs

Your value grew 31% a year on average

At this pace it doubles in about 2.6 yrs and reaches 34.8M in 5 years. That is not a forecast, just the current pace continuing; growth usually slows as scale increases.

Path so far + 5-year projection

010M20M30M40MYr 0Yr 2Yr 4Yr 6Yr 8
Constant-pace pathSame pace continued

The realised part is the constant-pace path between the two points; actual years may have deviated from it.

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Results are estimates based on the values you enter, not investment or financial advice. The calculation runs in your browser and no separate request is made to send your numbers. The values you enter are written into the link in the address bar.

Formula

  • Total growth

    (End value ÷ Start value − 1) × 100

  • CAGR

    (End value ÷ Start value)^(1 ÷ Number of years) − 1

    If the period is entered in months, years = months ÷ 12.

  • Doubling time

    ln 2 ÷ ln(1 + CAGR)

    Years needed to double if the same pace continues.

  • Projection

    Current value × (1 + CAGR)^n

How to read the result

CAGR compresses the journey between two points into one constant rate. It hides the ups and downs in between: a company that grew 80% one year and shrank 10% the next can show the same CAGR as one that grew steadily. Read the result together with the year-by-year figures.

Total growth sounds impressive; CAGR tells you the real tempo. 100% growth over five years sounds strong but is roughly 15% a year. When you present growth to investors, a board or your team, giving both numbers sets expectations correctly.

The projection is not a forecast, it is an "if this pace holds" scenario. Growth usually slows as a company scales: markets saturate, channels tire and team capacity binds. Treat the projection as the ceiling of what the current engine can carry, not as a target.

In target mode, the resulting rate shows how ambitious the plan is. If the required pace is well above your historical CAGR, accept that existing channels won't get you there and design a new growth lever: a new market, pricing, product or channel.

If your values are in a high-inflation currency such as the Turkish lira, nominal CAGR can mislead. To see real growth in purchasing power, use the Real Growth Calculator.

Frequently asked questions

What is CAGR and how is it calculated?

CAGR (compound annual growth rate) is the constant yearly rate at which a value would have grown from start to end. Formula: (End ÷ Start)^(1 ÷ years) − 1. Revenue that went from 4 million to 9 million in 3 years has a CAGR of about 31%.

What is the difference between CAGR and average annual growth?

A simple average adds up the yearly growth rates and divides by the number of years, ignoring compounding. A value that grows 50% and then falls 50% has a simple average of 0%, yet it actually lost 25%. CAGR accounts for compounding, so it reflects the true path from start to end.

Can I use CAGR for periods shorter than a year?

You can, but read it with care. Annualising six months of growth turns small differences into very large rates, and seasonality distorts the result. For short periods, reporting monthly growth or total growth is more honest.

How fast do I need to grow each year to reach a target?

Switch the calculator to "Target" mode and enter today's value, the target and the period. The result is the constant annual growth rate needed to get there. Comparing it with your historical CAGR quickly shows whether the plan is realistic.

Is it right to calculate CAGR on lira revenue?

It is right for nominal growth, but under high inflation a large part of the growth comes from price increases. To see real growth, run the same figures through the Real Growth Calculator or compare them in US dollars.

How do I find the doubling time?

If the same CAGR continues, the time to double is ln 2 ÷ ln(1 + CAGR). For a quick mental estimate, the commonly cited rule of thumb is the "rule of 72": divide 72 by the growth rate in percent. The calculator uses the exact formula.

Let's read the story behind the numbers together.

Let's pin down which metric is really limiting your growth and which lever to pull first.

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