CAGR Calculator
Calculate the compound annual growth rate (CAGR) of an investment from its beginning and ending values.
Investment growth
Compound annual growth rate
9.60%
$10,000 grew to $25,000 over 10 years.
Total return
150.00%
Growth multiplier
2.50x
Frequently Asked Questions about the CAGR Calculator
What is CAGR and how is it different from total return?
CAGR is the smoothed annual rate at which an investment would have grown if it compounded at the same rate every year. Total return is the cumulative percentage change from start to finish, ignoring how long it took. A 100% total return over 10 years is only about 7.18% CAGR.
What is a good CAGR for stock investments?
The S&P 500 has delivered roughly 10% nominal CAGR (about 7% after inflation) since 1926. Anything consistently above 10% CAGR over long periods is considered strong; below 5% usually underperforms broad equity benchmarks.
Why use CAGR instead of a simple average growth rate?
Simple averages ignore compounding and overstate returns when results swing year to year. A portfolio that gains 50% then loses 50% has a 0% average but a negative CAGR, because compounding leaves you with 75% of your start value.
Can CAGR be negative?
Yes. If the ending value is lower than the beginning value, CAGR will be negative, showing the average annual rate of decline.
Does CAGR include dividends or contributions?
No. CAGR only uses the start and end values you enter. To include reinvested dividends, use the total return value (start plus all dividends reinvested). For ongoing contributions, use a compound interest calculator instead.