CAGR Calculator

Calculate Compound Annual Growth Rate — the smoothed annual growth rate of an investment over time.

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CAGR
Total Return
Growth Multiple
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What Is CAGR?

CAGR shows the steady annual growth rate that would take an investment from its beginning to ending value. It smooths out volatility.

Formula

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

Example

$10,000 growing to $25,000 in 5 years = CAGR of 20.11%.

Frequently Asked Questions

Is CAGR the same as average return?

No. CAGR accounts for compounding. Average annual return doesn't. CAGR is more accurate for multi-year performance.

What's a good CAGR?

S&P 500 historical CAGR is ~10%. Above 15% is excellent. Above 25% is exceptional.

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