Growth Rate Calculator
Compound, not divided.
Total growth
61.9%
4.1% compounded per period
The compound rate is 4.1% and the simple average is 5.2%. Dividing total growth by periods always overstates the per-period rate, because it ignores that each period grows from a larger base than the last.
How the Growth Rate Calculator works
Dividing total growth by the number of periods always overstates the per-period rate, because it ignores that each period grows from a larger base than the last. The compound rate is the one that reproduces the actual outcome.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How do I calculate a compound growth rate?
Divide ending by starting value, raise to the power of one over the number of periods, and subtract one. It is the rate that, applied repeatedly, produces the observed end value.
Why is the simple average wrong?
Because growth compounds. Total growth of 60% over twelve months is not 5% a month — it is about 4% a month, and the difference widens as rates rise.
What is CAGR?
Compound annual growth rate — the same calculation with years as the period. It smooths volatile years into a single equivalent rate, which is useful for comparison and hides the volatility entirely.
When is CAGR misleading?
When the path matters. Two businesses with identical CAGR can have completely different risk profiles if one grew steadily and the other collapsed and recovered.