📊 CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) to measure investment performance over time. Compare returns across different investments with annualized growth rate.
Investment Details
Understanding CAGR (Compound Annual Growth Rate)
CAGR is the mean annual growth rate of an investment over a specified time period longer than one year. It represents one of the most accurate ways to calculate returns for anything that can rise or fall in value over time.
CAGR Formula
CAGR = (Ending Value / Beginning Value)^(1/n) - 1
Where:
- Ending Value = Final investment value
- Beginning Value = Initial investment amount
- n = Number of years
Example Calculation
Investment Growth Example
Scenario: You invested $10,000 in a mutual fund 5 years ago. Today it's worth $18,000.
Calculation:
- CAGR = ($18,000 / $10,000)^(1/5) - 1
- CAGR = (1.8)^(0.2) - 1
- CAGR = 1.1249 - 1
- CAGR = 12.49%
This means your investment grew at an average rate of 12.49% per year over the 5-year period.
Typical CAGR Benchmarks
| Asset Class | Historical CAGR | Time Period |
|---|---|---|
| S&P 500 | 10.0% | 1926-2024 |
| US Bonds | 5.0% | 1926-2024 |
| Real Estate | 8.0% | 1970-2024 |
| Gold | 6.0% | 1970-2024 |
| Inflation | 3.0% | 1926-2024 |
References
- CFA Institute. (2025). Investment Performance Measurement. CFAINstitute.org.
- Morningstar. (2025). Historical Market Returns. Morningstar.com.
Last Updated: February 17, 2026
Disclaimer: Past performance doesn't guarantee future results. CAGR smooths returns and doesn't reflect volatility.
Disclaimer: Past performance doesn't guarantee future results. CAGR smooths returns and doesn't reflect volatility.