CAGR Calculator
Calculate the Compound Annual Growth Rate of your investment. Find the smoothed annual return that would produce the same final value.
Compound Annual Growth Rate
20.11%
Total Return
150.00%
Multiplier
2.50x
Your investment grew at 20.11% per year
CAGR Comparison
| Benchmark | Typical CAGR | Your CAGR |
|---|---|---|
| S&P 500 (Historical) | ~10% | 20.11% |
| Warren Buffett (Career) | ~20% | 20.11% |
| Bonds (Historical) | ~5% | 20.11% |
| Inflation (Average) | ~3% | 20.11% |
How It Works
- 1Enter the beginning value of your investment.
- 2Enter the ending value (what your investment is worth now).
- 3Input the number of years between the two values.
- 4The calculator shows your CAGR, total return, and investment multiplier.
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) is the rate of return that would be required for an investment to grow from its beginning value to its ending value, assuming profits were reinvested. It smooths out volatility to show a consistent annual growth rate.
Why is CAGR better than average return?
CAGR accounts for compounding and gives you the actual rate at which your investment grew annually. Average return can be misleading because it doesn't account for the order and magnitude of gains and losses.
What's a good CAGR for investments?
The S&P 500 has delivered roughly 10% CAGR historically. A 'good' CAGR depends on your risk tolerance and asset class. Stocks might target 8-12%, bonds 3-5%, and real estate 8-10% including rental income.
Can CAGR be negative?
Yes, if your ending value is less than your beginning value, the CAGR will be negative, indicating your investment lost value on an annualized basis.