Average Growth Rate Calculator
Calculate average growth rate from multiple time periods with CAGR analysis. Find compound annual growth rate and analyze growth trends with our comprehensive calculator.
Quick Answer
CAGR = (Final Value ÷ Initial Value)^(1 ÷ Years) - 1. $1,000 to $2,000 in 5 years: (2000 ÷ 1000)^(1/5) - 1 = 14.9% CAGR. Essential for investment and business growth analysis.
Calculator Preview
CAGR: 12.2%
Total Growth: 150%
Average Annual: 12.2%
Key Features
CAGR Calculation
Compound annual growth rate
Average Rate
Simple average growth rate
Multiple Periods
Analyze irregular growth
Growth Projection
Future value predictions
How It Works
Enter Values
Input initial and final values and time period
Choose Method
Select CAGR or average growth rate
Calculate Rate
System computes growth rate automatically
See Analysis
View detailed growth breakdown
Why Calculate Growth Rate?
Investment Analysis
Compare investment performance
Business Planning
Set realistic growth targets
Performance Tracking
Monitor progress over time
Types of Growth Rates
CAGR (Compound Annual Growth Rate)
Most accurate for investments. Accounts for compounding effects. Formula: (Final/Initial)^(1/Years) - 1.
Average Annual Growth Rate
Simple average of yearly growth rates. Good for stable, linear growth patterns.
Linear Growth Rate
Constant growth each period. Total growth ÷ number of periods.
Exponential Growth Rate
Accelerating growth over time. Common in technology and startups.
Real-World Examples
Stock Market Growth
S&P 500: 10% average annual return over 50 years. $1,000 invested in 1970 would be worth $150,000+ today.
Company Revenue
Tech startups often aim for 50-100% annual growth in early years, maturing to 20-30% as they scale.
Population Growth
Global population growth: ~1.05% annually. Some cities grow 2-3% due to migration.
Inflation
Historical inflation: 2-3% annually. Central banks target 2% for stable economies.
Calculate Your Growth Rate
Analyze growth trends and calculate CAGR for your investments or business
Use Full CalculatorFrequently Asked Questions
What's the difference between CAGR and average growth rate?
CAGR accounts for compounding and is more accurate for investments. Average growth rate is simpler but doesn't account for compounding effects.
When should I use CAGR vs average?
Use CAGR for investments and business metrics. Use average for stable, predictable growth patterns like salary increases.
Can growth rate be negative?
Yes, negative growth rate indicates decline. A -5% CAGR means value decreased by 5% annually on average.
How do I calculate growth rate for irregular periods?
Calculate year-over-year growth rates, then find the average. For irregular patterns, CAGR over the entire period is usually best.