Compound Annual Business Growth Calculator
Enter a series of yearly values to get the compound annual growth rate, year-over-year growth table and simple average growth.
Your inputs
Results
Compound annual growth rate
18.9207%
- Simple average of yearly growth
- 19.1667%
- Total growth
- 100%
- Strongest year-over-year growth
- 25%
✓Exact calculation — rounded only for display
| Period | Value | Growth |
|---|---|---|
| 0 | 100 | — |
| 1 | 120 | 20% |
| 2 | 150 | 25% |
| 3 | 160 | 6.67% |
| 4 | 200 | 25% |
What this calculator does
A multi-year history shows both the smoothed trend (CAGR) and the year-to-year swings. This tool computes both from a list of values.
Formula and method
Worked example
Calculated by this tool with its default inputs:
Inputs
- Yearly values in order (oldest first): 100, 120, 150, 160, 200
Results
- Compound annual growth rate: 18.9207%
- Simple average of yearly growth: 19.1667%
- Total growth: 100%
- Strongest year-over-year growth: 25%
How to read the results
If the simple average of yearly growth is far above CAGR, growth has been volatile.
Assumptions and limitations
- Only the first and last values determine CAGR; the table shows the path between them.
Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.
Questions
Why is CAGR lower than average growth?
Volatility reduces compound growth relative to the arithmetic average.
Methodology and verification
- Result type
- Exact mathematical calculation (rounded only for display)
- Formula version
- 1.0
- Automated verification
- 3 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
- Editorial review
- Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.
Privacy
Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Inputs are added to a share link only if you choose to include them. Privacy policy