Growth Rate Calculator
Calculate simple growth, CAGR, and month-over-month growth rates
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About Growth Rates
Growth rate measures the percentage change over a period. Simple growth shows the total change between two values. CAGR smooths out volatility to show the annualized growth rate over multiple periods. Month-over-month (MoM) growth tracks sequential changes and helps identify trends. The Rule of 72 provides a quick estimate of how long it takes to double at a given growth rate.
Frequently Asked Questions
How do you calculate growth rate?
Simple growth rate = ((End Value − Start Value) / Start Value) × 100. For example, growing from 1,000 to 1,500 users gives a 50% growth rate. This formula works for any two-point comparison. For multiple periods, use CAGR to smooth out volatility. For sequential monthly data, use month-over-month analysis to track trends and spot inflection points.
What is CAGR and when should I use it?
CAGR (Compound Annual Growth Rate) is the smoothed annual growth rate over multiple years, calculated as (End / Start)^(1 / periods) − 1. Use it when comparing performance across multi-year periods or benchmarking against industry growth. Unlike simple growth, CAGR accounts for compounding and removes the distortion of volatile intermediate years, making it the standard metric for long-term business growth reporting.
What is a good month-over-month growth rate for a startup?
Early-stage startups in growth mode typically target 5–15% MoM growth, though top-performing companies in their first year can achieve 20–30% or higher. For mature businesses, even 3–5% MoM is strong. Context matters more than the number — consistent upward trends with low volatility are often more valuable than spikey growth that masks churn or seasonality.
What is the Rule of 72 in growth calculations?
The Rule of 72 is a quick mental math shortcut: divide 72 by your growth rate to estimate how many periods it takes for a value to double. At 10% annual growth, doubling time is approximately 7.2 years. At 36% annual growth, it doubles in about 2 years. It is an approximation, but accurate enough for rapid planning and communicating growth trajectory to non-technical stakeholders.
What is the difference between simple growth rate and CAGR?
Simple growth rate measures total change from a start point to an end point regardless of time. CAGR measures the equivalent annual rate that would produce that total change through compounding over a specified number of years. A business that grew 100% over 5 years has a simple growth rate of 100% but a CAGR of about 14.9% per year — very different numbers that tell different stories.