Business growth calculator
Revenue CAGR Calculator
Measure the annualized compound growth rate between beginning revenue and ending revenue over a known period.
Business growth tool
Calculate annualized revenue growth
Instant result
Revenue CAGR: 12.4746%
- Revenue CAGR
- 12.4746%
- Beginning revenue
- $1,000,000
- Ending revenue
- $1,800,000
- Total growth
- 80%
- Absolute change
- $800,000
- Growth multiple
- 1.8×
- Time period
- 5 years
Growth chart
Smoothed compound growth from the starting value to the ending value.
$1,000,000 → $1,800,000
Growth over time
A smoothed path using the calculated compound annual growth rate.
| Period | Value |
|---|---|
| Start | $1,000,000 |
| 1 years | $1,124,746.11 |
| 2 years | $1,265,053.82 |
| 3 years | $1,422,864.37 |
| 4 years | $1,600,361.17 |
| 5 years | $1,800,000 |
Revenue CAGR formula
Revenue CAGR uses the same compound growth formula as the standard CAGR calculation, with revenue used as the beginning and ending values.
What this number means
Revenue CAGR is a smoothed annual growth rate. It is useful for comparing businesses or periods of different lengths, but it does not show whether revenue increased smoothly every year.
Revenue can be affected by acquisitions, divestitures, currency changes, accounting changes, or one-time events, so CAGR should be interpreted with the underlying business context.
Revenue CAGR vs YoY revenue growth
Revenue CAGR compresses the change between a beginning revenue value and an ending revenue value into one annualized compound rate across the full period. Year-over-year (YoY) revenue growth compares one reporting period with the corresponding prior-year period, so it shows where growth accelerated or slowed from year to year.
Use CAGR to summarize a multi-year growth pace; use YoY when the shape of the yearly revenue path matters. A company can have a strong multi-year CAGR while still reporting one or more weak YoY periods.
Last verified
2026-09-20
Calculation methodology
Calculation methodology