CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) from investment values, or project future values using a target growth rate. CAGR shows the smoothed annual return over a period.
Enter values to calculate CAGR.
How It Works
CAGR = (Ending Value / Starting Value)^(1/Years) - 1
CAGR smooths out volatility to show what constant annual growth rate would produce the same result. It's useful for comparing investments with different time periods or projecting future growth based on historical returns.
Frequently Asked Questions
What's the difference between CAGR and average return?
Average return adds up yearly returns and divides by years. CAGR accounts for compounding. Example: +100% then -50% = 0% average return, but CAGR = 0% (you're back where you started). CAGR reflects actual growth.
What's a good CAGR?
S&P 500 historical CAGR is about 10%. Anything consistently above 15% is excellent. Above 25% is exceptional but rare to sustain. Context matters—compare to benchmarks and consider risk. Higher returns often mean higher risk.
Can CAGR be negative?
Yes. If your ending value is less than starting value, CAGR will be negative, representing annual decline. A -10% CAGR means the investment lost about 10% per year on average over the period.