How to use this tool
- Enter starting period revenue, ending period revenue, years between periods.
- Select Calculate to view the result.
- Check the method and assumptions below before using the result.
Input reference and sample values
Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.
| Input | Format and units | Sample |
|---|---|---|
| Starting period revenue | Numeric value. Unit: money. Must be greater than zero. | 100000 |
| Ending period revenue | Numeric value. Unit: money. Zero or positive. | 144000 |
| Years between periods | Numeric value. Unit: years. Must be greater than zero. Maximum: 100. | 2 |
Result for these sample inputs
20 percent
- Total revenue growth (%)
- 44
- Revenue change
- 44000
- Period (years)
- 2
Annualized growth (CAGR) smooths the change into one constant yearly rate. It does not describe the actual path of revenue.
Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.
The method, explained
Revenue CAGR = [(ending revenue ÷ starting revenue)^(1 ÷ years) − 1] × 100. Total growth = (ending revenue ÷ starting revenue − 1) × 100.
Annual revenue rising from 100,000 to 144,000 over two years has a 20% annualized growth rate and 44% total growth.
What to keep in mind
Compare equal-length reporting periods, such as annual revenue to annual revenue. CAGR smooths intervening fluctuations and is not an actual year-by-year history. Starting revenue must be positive; ending revenue cannot be negative.
Common questions
Why is CAGR different from total growth?
Total growth covers the entire interval. CAGR expresses the constant compounded yearly rate that would connect the endpoints.
Can I enter six months?
Yes. Enter 0.5 years and compare equivalent revenue periods. Annualizing a short or seasonal interval can exaggerate its significance.
Methodology maintained by ClarityKit. How these tools are built and checked.