How it works
CAGR smooths bumpy returns into one steady yearly rate — the rate that would grow your start to your end if it compounded evenly every year.
CAGR = (End ÷ Start)1 ÷ years − 1
It's the fairest way to compare investments over different time periods.
Frequently asked questions
CAGR vs average return?
Average return can mislead with volatility. +50% then −50% averages 0% but loses 25%. CAGR shows the true −13.4%.
What is a good CAGR?
~10% matches long-run US stocks. Beating 10% consistently over decades is extremely rare.
What is the Rule of 72?
Divide 72 by your rate to estimate doubling time: 8% → ~9 years.
Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or legal advice. Consult a qualified professional before making financial decisions.