CAGR Calculator
CAGR answers a simple question: what steady annual growth rate turns your beginning value into your ending value over the period? It smooths out volatility into one comparable number.
$
$
CAGR
9.60%
Total Growth
150.00%
Growth Multiple
2.50×
What this means: Growing from $10,000 to $25,000 over 10 years is a 9.60% compound annual growth rate.
Implied Smooth Growth Path
CAGR formula
CAGR = (End / Begin)^{1/years} − 1The n-th root of the total growth multiple, where n is the number of years. It represents the constant annual rate that produces the same overall result.
How It Works
- 1CAGR converts lumpy, volatile returns into a single smooth annual rate.
- 2It’s ideal for comparing investments held for different lengths of time.
- 3It ignores deposits and withdrawals — use the Investment Return calculator if you added money.
Frequently Asked Questions
Is CAGR the same as average return?
No. A simple average overstates performance when returns are volatile. CAGR is the geometric rate, which reflects what you actually earned.
Can CAGR be negative?
Yes — if your ending value is below your beginning value, CAGR will be negative.
What is a good CAGR?
The S&P 500’s long-run CAGR is roughly 10% (about 7% after inflation). Consistently beating that is difficult.
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Disclaimer: These calculators are for informational and educational purposes only and do not constitute financial, tax, or investment advice. Results are estimates based on your inputs. Consult a qualified professional before making financial decisions.