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Results are estimates only and should not be considered financial or medical advice. Always consult a qualified professional.

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Compound Annual Growth Rate (CAGR) Calculator

Work out the average yearly growth rate of an investment from the start and end values, then see the value at every year of the period.

$
$
yrs

Results

CAGR

14.87%

Total Return

100.0%

Total Gain

$10,000

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Value Year by Year

YearValueTotal Growth
1$11,486.98$1,486.98
2$13,195.08$3,195.08
3$15,157.17$5,157.17
4$17,411.01$7,411.01
5$20,000$10,000

Results are estimates only and should not be considered financial advice. Always consult a qualified professional before making financial decisions.

Formula

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

Worked Example

$10,000 grows to $20,000 in 5 years: CAGR = (20,000 ÷ 10,000)^(1/5) − 1 = 14.87% per year.

Frequently Asked Questions

What is CAGR?
CAGR — compound annual growth rate — is the average annual growth rate an investment would have needed to grow from its starting value to its ending value over a number of years, assuming steady compounding each year.
Why use CAGR instead of simple return?
Simple return divides total gain by the start value, ignoring how long you held the investment. CAGR smooths returns into one yearly rate, so you can fairly compare investments held over different periods.
Is CAGR the same as realized annual return?
Not necessarily. Real-world returns fluctuate year to year. CAGR is the implied constant rate that reproduces the same final value — it tells you the average pace, not the actual year-by-year path.
Does CAGR account for dividends and withdrawals?
Only if you include them in the ending value. For accurate results, the ending value should reflect all reinvested dividends and you should avoid withdrawals or deposits during the holding period.
How is CAGR different from APY?
APY measures the effective annual interest on a rate that compounds within a single year. CAGR measures the average yearly growth of a portfolio across multiple years. Both are annualized, but they answer different questions.
What is a good CAGR for an investment?
Historically, the S&P 500 has returned roughly 7–10% per year including dividends. Real estate and bonds tend to be lower. A 10%+ long-run CAGR is considered strong performance.

Related Tools

Compound Interest CalculatorAPY CalculatorRule of 72 CalculatorRetirement Calculator

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