CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) of your investments. Measure smooth annual growth over time.
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CAGR
+20.11%
Compound Annual Growth Rate
Absolute Return
+150.0%
Profit
$75,000
Beginning Value
$50,000
Ending Value
$125,000
Growth Trajectory
Y0
Y1
Y2
Y3
Y4
Y5
Frequently Asked Questions
What is CAGR and how is it calculated?
CAGR (Compound Annual Growth Rate) measures the mean annual growth rate of an investment over a period. It is calculated as (Ending Value / Beginning Value)^(1/Years) - 1.
What is the difference between CAGR and average return?
CAGR represents a smoothed annual growth rate assuming reinvestment, while average return is a simple arithmetic mean that ignores compounding effects.
What is a good CAGR for investments?
Historical stock market CAGR is around 7-10% annually after inflation. A good CAGR depends on your investment type, risk tolerance, and market conditions.