CAGR Calculator
Find the Compound Annual Growth Rate of any investment. Enter your starting value, ending value, and time period — get the annualised return instantly. Supports any currency, including loss scenarios.
Investment details
Your results
CAGR
+20.11%
compounded annually
Absolute gain
+$15,000
+150.0% total return
Duration
5 years
Year-by-year growth
| Year | Value | Return |
|---|---|---|
| Yr 1 | $12,011 | +20.1% |
| Yr 2 | $14,427 | +44.3% |
| Yr 3 | $17,329 | +73.3% |
| Yr 4 | $20,814 | +108.1% |
| Yr 5 | $25,000 | +150.0% |
* CAGR assumes a constant growth rate. Actual returns vary year to year.
What is CAGR?
CAGR — Compound Annual Growth Rate — is the annualised rate of return on an investment over a given time period, assuming all gains are reinvested at the end of each year. It smooths out the volatility of individual years to give you a single, comparable number.
CAGR is used globally by investors, analysts, and businesses to compare the performance of stocks, funds, real estate, business revenue, and virtually any metric that changes over time.
CAGR Formula
CAGR = (Final Value ÷ Initial Value) ^ (1 ÷ Years) − 1
Multiply by 100 to express as a percentage. Example: $10,000 → $25,000 over 5 years = (25,000 ÷ 10,000)^(1/5) − 1 = 20.11% CAGR.
CAGR vs Absolute Return
Absolute return is the total percentage gain or loss, regardless of time. CAGR converts that into a per-year figure so you can compare investments held for different durations. A 200% absolute gain sounds better than 150% — but if the 150% happened in 3 years (CAGR 35%) and the 200% took 15 years (CAGR 7.5%), the shorter investment dramatically outperformed on an annualised basis.
How to use this calculator
- Select your currency (USD, EUR, GBP, INR, and more)
- Enter the initial value of your investment
- Enter the final (current or expected) value
- Set the number of years the investment was held
- See CAGR, absolute gain/loss, and a year-by-year table instantly
Switch to Target CAGR mode to work backwards: enter a desired annual growth rate and find out what final value you need to reach it.
What is a good CAGR?
There's no single answer — a "good" CAGR depends on the asset class, the time horizon, and the risk taken. Here are historical benchmarks to calibrate against:
| Asset | Historical CAGR |
|---|---|
| S&P 500 (20-yr avg) | ~10.5% |
| Global equities (MSCI World) | ~9% |
| US bonds (Bloomberg Agg) | ~4% |
| Gold | ~7–8% |
| Bitcoin (2015–2024) | ~60% |
| US Real Estate (Case-Shiller) | ~4–5% |
Past performance does not guarantee future results. Always consider risk and your personal investment goals.
Frequently asked questions
Can CAGR be negative?
Yes. If your final value is lower than your initial value, CAGR will be negative — indicating an annualised loss. For example, $10,000 falling to $7,000 over 4 years gives a CAGR of about −8.5% per year. This calculator supports negative CAGR scenarios.
What is the difference between CAGR and IRR?
CAGR assumes a single lump-sum investment at the start. IRR (Internal Rate of Return) accounts for multiple cash flows at different times — useful for evaluating projects with ongoing investments or withdrawals. For a single investment held over time, CAGR and IRR are equivalent.
What is a reverse CAGR calculator?
Reverse CAGR lets you set a target growth rate and calculates what final value you need to achieve it. For example: 'I have $20,000 today. What do I need to reach for a 12% CAGR over 10 years?' Switch to 'Target CAGR' mode above.
How is CAGR different from average annual return?
Average annual return simply averages year-by-year returns arithmetically. CAGR uses geometric compounding, which accounts for the effect of losses and gains on each other. CAGR is almost always lower than the arithmetic average but is a more accurate picture of actual wealth growth.
Is CAGR the same as annualised return?
Yes — CAGR and annualised return mean the same thing. Both express the equivalent constant yearly growth rate that would take you from the starting value to the ending value over the given period.