Growth Rate Calculator

Enter a starting value, an ending value and the number of years between them. For one year you get the year-over-year growth rate; for several years you get the compound annual growth rate (CAGR), the steady yearly rate that would take the start to the end.

Year-over-year growth
25%
Total growth
25%
Change
30,000

Examples

CaseTotal growthPer year
Revenue up from $120,000 to $150,000 in a year25%25%
Investment from $10,000 to $20,000 in 7 years100%10.41%
Price from $50 to $40 in 2 years-20%-10.56%
Population from 80,000 to 100,000 in 10 years25%2.26%

The formulas

  • Growth rate = (end − start) ÷ start for a single period, such as one year.
  • CAGR = (end ÷ start)1 / years − 1 for several years.
  • End = start × (1 + CAGR)years to project forward at a steady rate.

To see a stock's return including dividends and fees, use the stock return calculator; to project savings growing at a fixed rate, use the compound interest calculator.

Frequently asked questions

How do you calculate year-over-year growth?

YoY growth = (this year − last year) ÷ last year × 100. Revenue of $150,000 after $120,000 the year before is (150,000 − 120,000) ÷ 120,000 = 25% growth.

What is CAGR and how is it calculated?

CAGR is the compound annual growth rate: (ending value ÷ starting value)^(1 / years) − 1. Doubling in 7 years is 2^(1/7) − 1 ≈ 10.4% a year.

Why is CAGR lower than total growth divided by years?

Because growth compounds. 100% total growth over 7 years is not 14.3% a year; each year grows from a bigger base, so about 10.4% a year is enough.

Can the growth rate be negative?

Yes. If the ending value is lower than the starting value the growth rate is negative: $50 falling to $40 is −20% in total, or about −10.6% a year over two years.

What is the rule of 72?

Divide 72 by the annual growth rate to estimate the years needed to double: at 8% a year, about 9 years. It is a quick approximation of the CAGR formula.

Sources

Last reviewed by the Quick Compound Interest Calculator team. Results are estimates for education, not financial advice.