Growth Rate Calculator
The compound growth rate shows how a quantity expands or contracts across a span of time. It reports the equivalent steady annual acceleration that links the initial magnitude to the final magnitude while smoothing out year-to-year volatility. This calculator applies the formula growth rate = (final ÷ initial)1 ÷ years − 1 to keep the interpretation consistent whether you model populations, revenues, user counts or physical quantities.
Example: A product line grows from 1.2 million units to 2.6 million units over 4 years. Plugging those values into the formula gives an annualized growth of about 21.4%, meaning the series would need to accelerate by that percentage each year to reach the same final magnitude.
Inputs
- Initial magnitude: the starting value of the quantity you are tracking.
- Final magnitude: the value after the observation window.
- Time span (years): the number of years between the initial and final values.
Enter all three values and click the button to reveal the annualized rate.