CAGR Calculator (Compound Annual Growth Rate)
Find the compound annual growth rate between two values — the smoothed yearly rate that turns your start into your end value — and compare it to the ~10%/yr S&P 500 average.
Where you land
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Learn moreWhat CAGR really measures
CAGR is the constant yearly rate that would grow your starting value to your ending value over the period — it smooths out the bumps of real returns into one comparable number. It is the standard way to compare investments, revenue growth, or fund performance across different time spans. It ignores volatility, so two very different paths can share a CAGR.
How it’s calculated & sources
CAGR = (ending value divided by beginning value)^(1 divided by years) − 1. Total growth and multiple are shown alongside. Compared to the ~10%/yr long-run S&P 500 average.
Benchmark: S&P 500 long-run average about 10 percent per year nominal (about 6.5 to 7 percent real), 1926 to 2025.
Results update as you type and are general estimates, not personalized advice. Verify with a professional.
Worked example
Growing $10,000 to $20,000 over 5 years is a 2.0x multiple, 100% total growth, and a CAGR of about 14.9%/yr — ahead of the ~10% market average.
Frequently asked questions
CAGR vs average return?
A simple average overstates growth because it ignores compounding and volatility. CAGR is the true compounded rate.
Does CAGR show risk?
No — it says nothing about how bumpy the ride was. Pair it with a volatility measure for the full picture.
Can CAGR be negative?
Yes — if the ending value is below the beginning value, CAGR is negative, showing an annualized loss.