CAGR Calculator (Compound Annual Growth Rate)
Measure the smoothed annualized return of your investment — the right way to compare returns across different time horizons.
Educational only. Past performance is not a guarantee of future returns.
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What is CAGR?
The Compound Annual Growth Rate is the constant rate at which an investment would have grown if it compounded steadily every year. Formula: CAGR = (End / Start)^(1/years) − 1. Useful for comparing investments over different periods.
Frequently asked questions
How is CAGR different from average return?
Average return divides total gain by years. CAGR captures compounding — the more accurate number for comparing performance over time.
Does CAGR include dividends?
Only if you reinvested them. Enter the ending value INCLUDING reinvested dividends for the most accurate result.
What is a good CAGR for stocks?
Historically, the S&P 500 has delivered ~10% CAGR since 1926. Anything above that consistently over long periods is rare.
More on risk-adjusted performance
The glossary covers CAGR, Sharpe Ratio, alpha, beta, and more.
Open glossary