Reviewed November 2026 · Estimate only, not financial advice.
CAGR is the smooth yearly rate that takes an investment from its starting value to its ending value. Enter the start and end amounts and the number of years to get the rate — plus the total gain.
How This CAGR Calculator Works
CAGR smooths out the bumps: it is the single constant yearly rate that would grow the starting value into the ending value over the given years, as if growth had been perfectly steady. Real investments jump around; CAGR tells you the average pace underneath the noise.
CAGR = (Ending ÷ Starting)1 ÷ years − 1
Expressed as a percentage. Total gain = Ending − Starting; total growth % = gain ÷ starting × 100.
Worked example: $10,000 grows to $25,000 over 10 years. CAGR = (25,000 ÷ 10,000)1÷10 − 1 = 9.60% per year. Total gain = $15,000 (150.0% total growth). An investment that actually returned 9.60% every single year would end at exactly $25,000.
Practical tips
CAGR hides volatility.Two investments can share a 9% CAGR while one never fell and the other crashed twice. Always ask how bumpy the ride was — CAGR alone does not show risk.
Compare like with like.CAGR is only meaningful over the same period. A 12% CAGR over 3 years and a 9% CAGR over 20 years are not directly comparable — the shorter one had less time to hit a bad stretch.
Use it to check a claim.If a fund advertises "doubled in 8 years", that is a CAGR of 9.05%. Run the numbers here before believing the headline.
Rule of 72 shortcut.Divide 72 by the CAGR to estimate doubling time: at 9.60%, money doubles roughly every 7.5 years.
Frequently Asked Questions
What is CAGR?
Compound Annual Growth Rate — the steady yearly rate that would take an investment from its starting value to its ending value over a given number of years.
How is CAGR different from the average return?
An average return is the arithmetic mean of yearly returns; CAGR is the geometric mean. If returns swing up and down, the CAGR is lower than the simple average — and it is the one that matches the actual ending value.
Can CAGR be negative?
Yes. If the ending value is below the starting value, CAGR is negative — the investment shrank by that percentage each year on average.
What is a good CAGR?
For a diversified US stock investment, about 7% after inflation over long periods is typical. Individual stocks and funds vary enormously — compare against a benchmark like the S&P 500 over the same years.
Does CAGR include dividends?
Only if the ending value includes reinvested dividends. If you took dividends as cash, the ending value should include them too, or the CAGR understates your real return.
Is this financial advice?
No. This is a planning estimate only, not financial advice.
