Unlock Your Investment's True Growth Story

Transform confusing returns into crystal-clear annual growth rates that reveal your investment's real performance

Stop guessing about your returns. CAGR cuts through market volatility to show you the steady annual growth rate that would produce your actual results.

CAGR Calculator - Measure Investment Performance

Calculate the compound annual growth rate to understand your investment's true performance and compare different opportunities with confidence.

Investment Details

$
$
$

Your Investment Performance

20.11%
Compound Annual Growth Rate
Your investment grew at this steady annual rate
150.00%
Total Return
$15,000
Total Gain
$3,000
Avg Annual Gain
2.5x
Growth Multiple

Performance Summary

Initial Investment: $10,000
Final Value: $25,000
Net Profit: $15,000

Investment Growth Visualization

Year-by-Year Growth Projection

Year Investment Value Annual Growth Cumulative Return

Master the Art of Investment Performance Analysis

The Compound Annual Growth Rate (CAGR) is your investment's true north star—a single, powerful metric that cuts through market noise to reveal exactly how your money has grown year after year. Unlike simple returns that can mislead with their ups and downs, CAGR shows you the steady annual growth rate that would produce your actual results, making it the gold standard for comparing investments across different time periods and asset classes.

Why CAGR Matters for Smart Investors

  • • Eliminates volatility confusion: Shows smooth annual growth despite market fluctuations
  • • Enables fair comparisons: Compare a 3-year stock with a 7-year bond accurately
  • • Reveals true performance: A 100% gain over 10 years is just 7.2% CAGR
  • • Guides future planning: Project realistic growth for financial goals

Real-World CAGR Benchmarks

S&P 500 (Historical): ~10% CAGR
Real Estate (National Avg): ~6% CAGR
High-Yield Savings: ~4% CAGR
Inflation (Long-term): ~3% CAGR

The CAGR Formula Demystified

CAGR = (Final Value / Initial Value)1/n - 1

Where n is the number of years. This elegant formula captures the essence of compound growth in a single calculation.

Strategic Investment Insights

15%+
Exceptional Performance
Rare, often unsustainable long-term
8-12%
Strong Performance
Solid long-term wealth building
4-7%
Moderate Growth
Conservative, steady progress

Advanced CAGR Applications

Portfolio Rebalancing Decisions

Use CAGR to identify which assets are consistently underperforming and need replacement. A diversified portfolio should show steady CAGR across different time horizons.

Retirement Planning Precision

Calculate how much you need to save monthly to achieve your retirement goals by working backwards from your target CAGR and time horizon.

Business Valuation Insights

Evaluate company growth rates, revenue trends, and market expansion using CAGR to make informed investment decisions in individual stocks or sectors.

Expert Tips for CAGR Analysis

  • 1. Consider multiple time periods: Calculate 1-year, 3-year, 5-year, and 10-year CAGR to spot trends and consistency patterns.
  • 2. Account for fees and taxes: Use after-fee, after-tax values for realistic performance assessment that reflects your actual returns.
  • 3. Compare against benchmarks: Your CAGR means nothing without context—always compare against relevant market indices and inflation.
  • 4. Factor in risk levels: A 12% CAGR with high volatility may be less attractive than 10% CAGR with steady growth.