Calculate the Compound Annual Growth Rate — the smoothed annual growth rate of an investment over any time period. Solve for CAGR, final value, start value, or years.
CAGR Calculator
Solve for any of 4 variables
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% (e.g. S&P 500 ~10%)
CAGR
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Ending Value
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vs Benchmark
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Starting Value
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Ending Value
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Years
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CAGR
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Total Gain
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Total Return %
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Benchmark CAGR
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Benchmark Final Value
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FAQ
What is CAGR?
CAGR (Compound Annual Growth Rate) is the rate at which an investment grows from its beginning to ending value, assuming profits are reinvested. Formula: CAGR = (EV/BV)^(1/n) - 1, where EV = ending value, BV = beginning value, n = years.
Why is CAGR useful?
CAGR smooths out year-to-year volatility and shows a single steady rate of return. It lets you compare investments across different time periods and sizes. It's used by Warren Buffett to measure Berkshire Hathaway's long-term performance.
What is a good CAGR?
The S&P 500 has averaged ~10% nominally (~7% inflation-adjusted) since 1926. A CAGR above 10% is excellent over a long period. Startups target 20-50%+ CAGR. For personal finance, 7-10% real returns are an ambitious but achievable CAGR benchmark.
CAGR vs Average Annual Return?
These are different! If a $10K investment gains 50% one year then loses 33%, the average is +8.5%. But the CAGR is 0% (10K → $15K → $10K). CAGR reflects actual compounded growth; average return can be misleading.