Simple Annual Growth Rate Calculator

Initial Value

Final Value

Number of Years

Calculation Results

Total Percentage Growth:

Simple Annual Growth Rate:

Note: This calculation uses linear growth (arithmetic mean) rather than compounding.

Please enter valid positive numbers for all fields. Initial value and years cannot be zero.

function calculateSAGR() { var initial = parseFloat(document.getElementById('initialValue').value); var final = parseFloat(document.getElementById('finalValue').value); var years = parseFloat(document.getElementById('numYears').value); var resultDiv = document.getElementById('sagrResult'); var errorDiv = document.getElementById('sagrError'); if (isNaN(initial) || isNaN(final) || isNaN(years) || initial === 0 || years <= 0) { resultDiv.style.display = 'none'; errorDiv.style.display = 'block'; return; } errorDiv.style.display = 'none'; // Total Growth Calculation var totalGrowthDecimal = (final – initial) / initial; var totalGrowthPercentage = totalGrowthDecimal * 100; // Simple Annual Growth Rate (Arithmetic Mean of total growth over years) var simpleAnnualRate = totalGrowthPercentage / years; document.getElementById('totalGrowth').innerText = totalGrowthPercentage.toFixed(2) + '%'; document.getElementById('annualGrowth').innerText = simpleAnnualRate.toFixed(2) + '% per year'; resultDiv.style.display = 'block'; }

Understanding the Simple Annual Growth Rate (SAGR)

The Simple Annual Growth Rate is a straightforward method used to determine the average yearly growth of an investment, population, or business metric over a specific period. Unlike the Compound Annual Growth Rate (CAGR), which assumes gains are reinvested, the SAGR measures linear growth.

The Simple Annual Growth Rate Formula

To calculate the simple annual growth rate, we first determine the total percentage growth over the entire period and then divide that by the number of years. The mathematical formula is:

        SAGR = [((Final Value – Initial Value) / Initial Value) * 100] / Number of Years
    

Step-by-Step Example

Suppose you started a small business with 500 subscribers, and after 4 years, you reached 800 subscribers. Here is how you calculate the simple annual growth rate:

Initial Value: 500
Final Value: 800
Absolute Growth: 800 – 500 = 300
Total Growth Percentage: (300 / 500) * 100 = 60%
Simple Annual Growth Rate: 60% / 4 Years = 15% per year

When to Use Simple Growth vs. Compound Growth

It is important to distinguish when SAGR is appropriate versus CAGR:

Feature	Simple Annual Growth (SAGR)	Compound Growth (CAGR)
Logic	Linear / Arithmetic	Exponential / Geometric
Best For	Short periods or simple sets	Long-term investments & Stocks
Complexity	Easy to calculate manually	Requires nth root calculation

Why Accuracy Matters

Using a simple growth rate is often preferred in reporting where "reinvestment" doesn't make sense—such as headcount growth, physical inventory increases, or simple interest accounts. It provides a clear, un-inflated view of how much the subject has grown on average relative to its starting point.