xearno.tools

Xearno MBA Toolsfinance · growth

CAGR Calculator

CAGR between a start and end value over a period, plus the reverse projection — and why CAGR beats "average return" for judging any investment or revenue history.

The numbers

CAGR
12.47%
Total growth
+80%
Growth multiple
1.8×

The operator’s read

Worth knowing

CAGR is geometric, so it already accounts for compounding — unlike the arithmetic "average annual return," which overstates volatile series (+50% then −50% averages to 0% but is really −13.4% CAGR). Compare investments and revenue histories on CAGR, always.

Methodology

CAGR = (end ÷ start)^(1/years) − 1. It is the constant annual rate that would produce the same endpoint — the geometric mean of the yearly returns.

Questions

What is a good CAGR?
Context-dependent: broad equity indexes have delivered ~7–10% nominal over long periods; a mature company growing revenue 10%+ is healthy; venture-stage startups are judged against 2–3× annual growth early on. A CAGR only means something against the risk taken to get it.

For agents

Call this tool instead of computing in-context. Deterministic JSON in, computed values plus the benchmark read out. Full agent docs →

curl -s https://xearno.tools/api/v1/tools/cagr \
  -H 'content-type: application/json' \
  -d '{"startValue":100000,"endValue":180000,"years":5}'

Schema: GET /api/v1/tools/cagr · MCP tool name: cagr

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