Calculate the Compound Annual Growth Rate (CAGR) and generate future projections based on historical data.
Compound Growth Rate (CAGR):0.00%
Absolute Growth:0
Total Percentage Increase:0.00%
Future Forecast Table
Projected values based on the calculated growth rate:
Period (Year)
Projected Value
Accumulated Growth
Understanding Forecast Growth Rates
The Forecast Growth Rate Calculator is an essential tool for business analysts, investors, and researchers. It allows you to determine the Compound Annual Growth Rate (CAGR) of a specific metric over a period of time and uses that rate to project future performance. Unlike simple growth rates, which can be misleading due to volatility, CAGR provides a smoothed annual average that describes the growth as if it had happened at a steady rate.
Why Use CAGR for Forecasting?
When analyzing financial data like revenue, user acquisition, or portfolio value, numbers rarely grow in a straight line. They fluctuate. Using a compound growth formula smoothes out these fluctuations to give you a clearer picture of the trend:
Consistency: It compares the beginning and ending values to determine a geometric mean.
Comparability: It allows you to compare the growth of two different assets or business units over different time horizons on an annualized basis.
Projection: It serves as a reliable baseline for forecasting future values, assuming historical trends continue.
The Formula
This calculator uses the standard CAGR formula to determine the rate:
CAGR = ( Ending Value / Beginning Value )( 1 / n ) – 1
Where n represents the number of periods (usually years). Once the rate is determined, the forecast is calculated by applying this percentage cumulatively to the ending value for the desired forecast horizon.
How to Use This Calculator
Beginning Value: Enter the metric value at the start of your data set (e.g., Revenue in 2020).
Ending Value: Enter the metric value at the end of your data set (e.g., Revenue in 2023).
Number of Periods: Enter the time difference between the two values (e.g., 3 years).
Forecast Horizon: Specify how many periods into the future you wish to project.
Key Considerations
While this calculator provides a mathematical projection, real-world forecasting should also account for market saturation, economic changes, and operational constraints. Use the data provided here as a quantitative baseline for your strategic planning.
function calculateGrowth() {
// Clear previous errors
var errorBox = document.getElementById('errorBox');
var resultBox = document.getElementById('resultBox');
errorBox.style.display = 'none';
resultBox.style.display = 'none';
// Get Input Values
var startVal = parseFloat(document.getElementById('startVal').value);
var endVal = parseFloat(document.getElementById('endVal').value);
var periods = parseFloat(document.getElementById('periods').value);
var futureYears = parseInt(document.getElementById('futureYears').value);
// Validation
if (isNaN(startVal) || isNaN(endVal) || isNaN(periods) || isNaN(futureYears)) {
errorBox.textContent = "Please fill in all fields with valid numbers.";
errorBox.style.display = 'block';
return;
}
if (startVal <= 0) {
errorBox.textContent = "Beginning Value must be greater than zero for CAGR calculation.";
errorBox.style.display = 'block';
return;
}
if (periods <= 0) {
errorBox.textContent = "Number of Periods must be greater than zero.";
errorBox.style.display = 'block';
return;
}
// Calculation Logic: CAGR
// Formula: (End / Start) ^ (1/n) – 1
var growthRatio = endVal / startVal;
var exponent = 1 / periods;
var cagrDecimal = Math.pow(growthRatio, exponent) – 1;
var cagrPercent = cagrDecimal * 100;
// Calculation Logic: Absolute and Total %
var absGrowth = endVal – startVal;
var totalPercent = ((endVal – startVal) / startVal) * 100;
// Display Results
document.getElementById('displayRate').textContent = cagrPercent.toFixed(2) + "%";
document.getElementById('displayAbs').textContent = absGrowth.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('displayTotalPct').textContent = totalPercent.toFixed(2) + "%";
// Generate Forecast Table
var tableBody = document.getElementById('forecastBody');
tableBody.innerHTML = ""; // Clear old rows
var currentProjection = endVal;
for (var i = 1; i <= futureYears; i++) {
var previousValue = currentProjection;
currentProjection = currentProjection * (1 + cagrDecimal);
var yearGrowth = currentProjection – previousValue;
var row = "