CAGR Calculator
CAGR is the smoothed annual growth rate between two points: (end ÷ start)1/years − 1. The upgrade nobody gives you: the real CAGR after inflation, and honest benchmarks — the S&P 500’s 30-year total-return CAGR is 10.35%.
CAGR = (end/start)1/yrs − 1. $10,000 → $25,000 in 10 years = 9.60% CAGR — about 6.4% real at 3% inflation. S&P 500 benchmarks: 14.82% (10-yr), 11.0% (20-yr), 10.66% since 1957.
- $10K→$25K, 10 yrs9.60%
- S&P 500, 10-yr TR CAGR14.82%
- S&P 500, 20-yr11.0%
- S&P 500 since 195710.66%
- Doubling rule72 ÷ CAGR ≈ years to double
S&P figures: total return with dividends, Total return (dividends reinvested), calendar years through Dec 31, 2025; computed from Slickcharts annual returns.
Is your CAGR good? The benchmark table
| Benchmark (total return, dividends reinvested) | CAGR |
|---|---|
| S&P 500 — trailing 5 years (2021–2025) | 14.43% |
| S&P 500 — trailing 10 years | 14.82% |
| S&P 500 — trailing 20 years | 11.0% |
| S&P 500 — trailing 30 years | 10.35% |
| S&P 500 — since 1957 (index inception) | 10.66% |
| 10-yr window, inflation-adjusted | 12.36% real |
Total return (dividends reinvested), calendar years through Dec 31, 2025; computed from Slickcharts annual returns; real figure per Jan 2016–May 2026 monthly window (officialdata.org). The recent decade ran hot — judging a strategy against 14.82% is fair only if it carried equity-like risk. Cash carried ~0.4% (national average savings APY) and CDs ~1.7% over recent windows.
Common trap: CAGR smooths volatility away. A fund alternating +60%/−30% shows the same CAGR as a steady +5.8% — but you needed a much stronger stomach (and got worse dollar-weighted results if you added money along the way).
Frequently asked questions
How is CAGR calculated?
(Ending value ÷ starting value)^(1/years) − 1. $10,000 growing to $25,000 over 10 years: (2.5)^0.1 − 1 = 9.60%.
What is a good CAGR for investments?
Context is everything: the S&P 500's long-run total-return CAGR is about 10.66% nominal (~7% real). Double-digit CAGR sustained over decades is exceptional; over 2–3 years it's often just a bull market.
What's the difference between CAGR and average return?
The arithmetic average ignores compounding and overstates results: +50% then −50% averages 0% but is a −13.4% CAGR (you're down 25%). CAGR reflects what actually happened to your money.
How do I adjust CAGR for inflation?
Real CAGR = (1 + nominal) ÷ (1 + inflation) − 1. A 9.6% CAGR during 3% inflation is a 6.4% real return; during 2026's 4.2% CPI it's 5.2%.
Sources & methodology
Sources: Slickcharts S&P 500 annual returns · BLS CPI.
S&P CAGRs computed from published annual total returns (calendar years through 2025). Past performance isn't predictive; not investment advice.