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📈 CAGR Calculator

Calculate the Compound Annual Growth Rate of any investment — or forecast future value at a given CAGR. The smoothed annual return rate used to compare investments over time.

CAGR Formula

Calculate CAGR:

CAGR = (Ending Value ÷ Beginning Value)^(1 ÷ Years) − 1

Calculate Future Value:

Ending Value = Beginning Value × (1 + CAGR)^Years

How to Use This Calculator

  1. 1
    Choose Mode
    "Calculate CAGR" finds the growth rate from a beginning and ending value. "Future Value" projects forward from a known CAGR.
  2. 2
    Enter Your Values
    For CAGR: enter beginning value, ending value, and years held. For FV: enter beginning value, CAGR%, and years.
  3. 3
    Review Results
    See CAGR%, total return %, and total gain in dollars to compare against benchmarks.
  4. 4
    Compare Investments
    Use CAGR to compare investments with different time periods on an equal footing.

Real-World Example

You invested $10,000 in 2014. By 2024 it grew to $25,000 (10 years).

CAGR = (25,000 ÷ 10,000)^(1÷10) − 1
CAGR = (2.5)^0.1 − 1 = 9.60% per year
Total Return = 150% over 10 years

Frequently Asked Questions

CAGR (Compound Annual Growth Rate) is the rate at which an investment would have grown each year if it grew at a steady rate. It smooths out volatility to provide a single comparable growth rate.

Average return simply averages yearly returns (+50%, -33% = 8.5% avg). CAGR calculates the actual geometric return (+50%, -33% = 0% CAGR — you're back where you started). CAGR reflects what you actually earned.

The S&P 500 has historically delivered ~10% CAGR over long periods. Individual stocks or funds with 15%+ CAGR over 10+ years are considered excellent. Anything above 20% over a decade is exceptional.

Yes. If your ending value is less than your beginning value, CAGR is negative. For example, investing $10,000 and having $8,000 after 5 years gives a CAGR of about -4.3%.

Use CAGR to compare investments held for different time periods. Use total return when comparing investments over the same period, or when time-weighting doesn't matter.

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