What the same amount would be worth at other yearly returns
| Yearly return | Value after the same period |
|---|
CAGR is a smoothed average. It shows the steady yearly rate that would turn your starting amount into your final value, not what happened in each individual year. Ignores additional deposits, withdrawals, fees and taxes. For education only, not financial advice.
What this CAGR calculator does
This CAGR calculator shows how well an investment has really performed. Enter what you invested, what it's worth now and how long you've held it, and you'll see:
- your CAGR (compound annual growth rate): the steady yearly return that would have produced the same result
- your total return (ROI) and your gain or loss in money
- your growth multiple, for example 1.61x
- your return after inflation, so you can see how much your buying power really grew
- what the same amount would be worth at other yearly returns, for comparison
How to use it
- Amount invested: what you put in at the start.
- Value now: what the investment is worth today, or what you sold it for.
- Years held and extra months: for example, 2 years and 6 months.
- Average inflation (optional): to see your real return after rising prices.
The CAGR formula
CAGR = (value now ÷ amount invested)^(1 ÷ years) − 1
Example: $10,000 growing to $16,105 over 5 years:
- $16,105 ÷ $10,000 = 1.6105
- 1.6105^(1 ÷ 5) = 1.10
- 1.10 − 1 = 10% a year
For more examples, and why CAGR differs from an average return, read our guide on how to calculate CAGR.
CAGR vs ROI
- ROI is the total return: $16,105 versus $10,000 is a 61% return.
- CAGR is the yearly equivalent: 10% a year.
ROI is useful as a quick snapshot. CAGR is better for comparing investments held for different lengths of time.
Why CAGR matters
Simple averages can make bumpy investments look better than they were. An investment that rises 50% and then falls 30% has an "average" return of 10%, but $10,000 only grows to $10,500. Its CAGR, about 2.47% a year, shows what really happened.
Limitations
- CAGR smooths out ups and downs, so it doesn't show how volatile the journey was.
- It assumes you didn't add or withdraw money along the way. For regular investing, use your platform's own return figures.
- It ignores fees and taxes unless they're already reflected in the value you enter.
- Past returns don't guarantee future results.
Frequently asked questions
What is a good CAGR?
It depends on the type of investment and its risk. Compare it with inflation, with a savings rate, and with similar investments over the same period.
Can I calculate CAGR for less than a year?
Yes. Enter 0 years and the number of months. Keep in mind that short-term CAGR figures can look extreme, because a small move is scaled up to a yearly rate.
Why is my CAGR lower than the average return?
Because CAGR accounts for compounding. Losses need bigger gains to recover from, so volatile investments grow less than their simple average suggests.
Is my data saved?
No. The calculator runs in your browser, and nothing you enter is stored.
Related tools and guides
- Compound interest calculator
- Inflation calculator
- How much will $10,000 be worth in 20 years?
- All free money calculators
This calculator is for education only and is not financial or investment advice. Results are estimates based on the figures you enter.