CAGR & Growth Calculator
A multi-year trend has two stories: the year-by-year bumps, and the single smooth average rate that describes the whole stretch. You usually need both.
CAGR & year-over-year growth calculator
Enter up to 5 years of a figure (revenue, profit, any series) to see year-over-year growth and the compound annual growth rate across the full period.
| Year | Value | YoY growth |
|---|---|---|
| Year 1 | ₹1,00,00,000 | — |
| Year 2 | ₹1,12,00,000 | 12.0% |
| Year 3 | ₹1,25,00,000 | 11.6% |
| Year 4 | ₹1,33,00,000 | 6.4% |
| Year 5 | ₹1,46,00,000 | 9.8% |
Educational illustration only. CAGR smooths a multi-year trend into one average annual rate — it hides any year-to-year volatility, which is why it’s read alongside the year-over-year figures above, not instead of them.
The CAGR formula
CAGR = (Ending Value ÷ Beginning Value)^(1 ÷ Number of Years) − 1. It answers “what single constant annual growth rate, compounded every year, would take the beginning value to the ending value?” — not what actually happened each year, which is why it’s a smoothing tool, not a substitute for looking at the year-over-year numbers.
Why YoY and CAGR can tell different stories
A business that grew 40%, then 40%, then -10%, then 40% has the same CAGR as one that grew a steady ~25% every year — the destination looks identical, but the ride was very different. Reading both figures side by side catches that a single CAGR number alone would hide.
Build full ratio and trend analysis in Excel
Growth rates are one piece of a wider ratio and trend toolkit, taught alongside liquidity, profitability and leverage ratios in Advanced Excel for Finance & Business.