Free calculator · Valuation & Returns
Compound Growth (CAGR)
Calculates the compound annual growth rate implied by a beginning value, a target ending value, and a number of years, and contrasts the small early-year gains with the larger late-year gains the same rate produces. Inputs are the beginning value, the ending value, and the number of years.
By Devon Coombs, CPA, MBA · Teaching Professor of Finance, Santa Clara University · Reviewed August 2026
From the author: Devon Coombs, CPA, MBA teaches finance at Santa Clara University and works with corporate teams on practical AI.
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Compound Growth (CAGR)
CAGR
17.5%
constant annual rate
Total growth
5.0×
end ÷ begin
First-year gain
$6,985
same rate, small base
Final-year gain
$29,732
same rate, larger base
The late-year acceleration is not better performance, it is the same 17.5% rate on a larger base. Straight-line intuition would add about $16,000 every year; compounding back-loads the dollars.
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This calculator comes from the free Entrepreneurial Finance course, where the concept is taught with readings, worked examples, and practice questions.
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Built by Devon Coombs, CPA, MBA, Teaching Professor of Finance at Santa Clara University.