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CAGR Calculator

Calculate Compound Annual Growth Rate from beginning and ending values. Solve for end value, start value, or years. Compare to benchmarks.

Solve For
Values
CAGR
9.60%
$10,000 → $25,000 in 10 years
CAGR
9.60%
Total Return
150.0%
Total Gain
$15,000
Real CAGR (inflation-adj)
6.41%
Doubling Time
7.2 yrs
MOIC
2.50×
Growth Milestones
YearValueGrowth% of Start
Future Value Projections by CAGR
CAGR5 Years10 Years20 Years30 Years
Your CAGR vs Benchmarks
BenchmarkHist. CAGR$10k in 10 yrsvs Your Return

Historical returns are approximate long-term averages. Past performance does not guarantee future results.

How to Use This Calculator

1

Enter Investment Values

Input your beginning value, ending value, and the number of years for the investment period.

2

Review Growth Rate

The calculator shows your Compound Annual Growth Rate plus total return and doubling time.

3

Compare Investments

Use the results to compare different investments on an equal annualized basis.

Formula & Methodology

CAGR

CAGR = (Ending Value / Beginning Value)^(1/n) - 1

Where n is the number of years. CAGR smooths out volatile returns into a single annual growth rate.

Total Return

Total Return = (Ending - Beginning) / Beginning x 100%

The overall percentage gain or loss over the entire period.

About this calculation · Accuracy & Methodology

Key Terms

CAGR
Compound Annual Growth Rate — the constant annual rate that would grow an investment from its beginning to ending value over the given period.
Total Return
The overall percentage gain or loss of an investment, not annualized.
Annualized Return
A return figure restated as an equivalent yearly rate, allowing apples-to-apples comparison across different time periods.
Doubling Time
The number of years required for an investment to double at the calculated CAGR, approximated by the Rule of 72.
Geometric Mean
CAGR is mathematically equivalent to the geometric mean of annual returns, which accounts for compounding effects.

Real-World Examples

Example 1

Stock Portfolio Growth

Beginning value: $10,000, Ending value: $25,000, Period: 8 years

Result: CAGR = 12.14%. The portfolio grew at an equivalent 12.14% per year, doubling roughly every 6 years.

Example 2

Real Estate Appreciation

Purchase price: $300,000, Current value: $420,000, Period: 5 years

Result: CAGR = 6.96%. The property appreciated at about 7% annually, outpacing typical 3% inflation.

CAGR Across Asset Classes (Historical Averages)

Asset ClassTypical CAGRVolatilityBest For
S&P 500~10%HighLong-term growth
Real Estate~6-7%MediumIncome + appreciation
Bonds~4-5%LowCapital preservation
Savings Account~2-4%NoneEmergency funds

Understanding Compound Annual Growth Rate

Why CAGR Matters More Than Average Return

Average returns can be misleading because they ignore compounding. A portfolio that gains 50% then loses 50% has a 0% average return but actually lost 25% of its value. CAGR captures this reality by showing the actual equivalent annual growth rate.

CAGR vs. IRR

CAGR works best for lump-sum investments with no intermediate cash flows. If you made additional deposits or withdrawals during the period, IRR (Internal Rate of Return) gives a more accurate picture of your investment performance.

Limitations of CAGR

CAGR hides volatility — a smooth 10% CAGR could mask years of wild swings. It also assumes reinvestment at the same rate. Always consider CAGR alongside standard deviation and maximum drawdown for a complete picture.