Investing
CAGR Calculator
CAGR is the single annual rate that would grow your starting amount to its ending value over the period — the standard way to compare investments with different time horizons. Enter the beginning and ending values and the number of years to see it.
Compound annual growth rate
7.18%
The smoothed annual rate over the whole period.
- Total return
- 100%
- Total gain
- $10,000
- Over
- 10
Years.
How this calculator works
CAGR = (ending value ÷ beginning value) ^ (1 ÷ years) − 1. Total return is (end − begin) ÷ begin. When the ending value is below the beginning, both figures are negative (a compound annual loss).
It reflects only the start and end values over the stated years — it doesn't account for contributions, withdrawals, dividends taken as cash, or the volatility of the path. It's a comparison tool, not a full performance measure.
Try an example
Frequently asked questions
What is CAGR?
The compound annual growth rate is the constant yearly rate that would take an investment from its starting value to its ending value over a period, as if it grew smoothly. It strips out the year-to-year volatility, giving one number you can compare across investments and time frames.
How do you calculate CAGR?
Divide the ending value by the beginning value, raise it to the power of 1 divided by the number of years, then subtract 1: CAGR = (End ÷ Begin)^(1/years) − 1. Growing $10,000 to $20,000 over 10 years is a CAGR of about 7.18% — not 10%, because the gains compound.
What's the difference between CAGR and total return?
Total return is the overall percentage gain over the whole period ($10k to $20k is +100%); CAGR annualizes that into a per-year rate (about 7.18%). Total return answers 'how much did it grow?' while CAGR answers 'how fast per year?' — the latter is what lets you compare a 3-year and a 10-year investment fairly.
What are the limitations of CAGR?
CAGR assumes smooth growth and ignores volatility, interim contributions or withdrawals, and the actual path — two investments with the same CAGR can have wildly different year-to-year swings and risk. Use it to compare endpoints, but pair it with a look at the volatility and drawdowns along the way.
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.