Calculate the percentage increase or decrease over time
Growth Summary
Total Growth Rate
0%
Annual Growth (CAGR)
0%
Absolute Change
0
Avg Yearly Increase
0
Understanding Annual Growth Calculation
Measuring growth is essential for evaluating performance in business, investments, or personal development. This annual growth calculator helps you determine the Compound Annual Growth Rate (CAGR) and the total percentage change over a specific period.
How to Calculate Annual Growth
Annual growth can be calculated in two primary ways: the simple annual growth and the Compound Annual Growth Rate (CAGR). While simple growth looks at the year-over-year change, CAGR provides a "smoothed" annual rate that accounts for the effects of compounding over time.
The CAGR Formula
CAGR = [(Ending Value / Initial Value)^(1 / Number of Years) – 1] x 100
Calculation Example
Imagine you have a business that had 5,000 customers in its first year. After 4 years, the customer count grew to 12,000. Here is how you would calculate the growth:
Initial Value: 5,000
Ending Value: 12,000
Time Period: 4 Years
Absolute Change: 12,000 – 5,000 = 7,000
Total Growth: (7,000 / 5,000) x 100 = 140%
CAGR Calculation: [(12,000 / 5,000)^(1/4) – 1] = 0.2447 or 24.47% per year
Why Track Annual Growth?
Tracking growth rates allows you to normalize performance data across different timeframes. It answers the question: "If this value grew at a steady rate every year, what would that rate be?" This is crucial for comparing the performance of a high-growth startup against an established stock or comparing different marketing campaigns.
function calculateGrowth() {
var startValue = parseFloat(document.getElementById("startValue").value);
var endValue = parseFloat(document.getElementById("endValue").value);
var years = parseFloat(document.getElementById("numYears").value);
var resultsArea = document.getElementById("resultsArea");
if (isNaN(startValue) || isNaN(endValue) || isNaN(years) || years <= 0 || startValue <= 0) {
alert("Please enter valid positive numbers. Initial value and years must be greater than zero.");
return;
}
// Absolute Change
var absoluteChange = endValue – startValue;
// Total Growth Percentage
var totalGrowthRate = (absoluteChange / startValue) * 100;
// Compound Annual Growth Rate (CAGR)
// Formula: [(EV / BV)^(1 / n)] – 1
var cagr = (Math.pow((endValue / startValue), (1 / years)) – 1) * 100;
// Average Yearly (Simple Average)
var avgYearly = absoluteChange / years;
// Display Results
document.getElementById("totalGrowthResult").innerHTML = totalGrowthRate.toFixed(2) + "%";
document.getElementById("cagrResult").innerHTML = cagr.toFixed(2) + "%";
document.getElementById("absoluteResult").innerHTML = absoluteChange.toLocaleString(undefined, {maximumFractionDigits: 2});
document.getElementById("avgYearlyResult").innerHTML = avgYearly.toLocaleString(undefined, {maximumFractionDigits: 2});
resultsArea.style.display = "block";
// Smooth scroll to results
resultsArea.scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}