Investment Return Calculator — Calculate Your CAGR

Starting Value ($)Enter a valid starting value.

Ending Value ($)Enter a valid ending value.

Number of YearsEnter a valid number of years.

Compound Annual Growth Rate

—

Total Return

—

How to Use This Tool

Enter your investment's starting value.
Enter its current or ending value.
Enter the number of years you held the investment, then calculate.

The CAGR Formula

CAGR = (Ending Value ÷ Starting Value)^(1 ÷ Years) − 1

Why CAGR Is the Standard Metric

Compound Annual Growth Rate smooths out year-to-year volatility into a single, standardized annual rate — making it possible to fairly compare investments held over different time periods or with very different volatility patterns. A simple total return percentage doesn't account for how long it took to achieve that return, which CAGR corrects for.

CAGR vs. Actual Year-to-Year Returns

CAGR represents a smoothed, hypothetical constant annual rate — it doesn't mean your investment grew by exactly that percentage every single year. Real investments typically have some years of higher gains and some of losses, which average out to the CAGR over the full period.

Common Uses

Comparing the performance of different stocks, funds, or portfolios over the same or different time periods
Evaluating your own portfolio's historical performance
Projecting future growth using a reasonable estimated CAGR based on historical data

Frequently Asked Questions

What's the difference between CAGR and total return?

Total return is the overall percentage gain over the entire period, while CAGR expresses that same growth as a standardized annual rate — CAGR is more useful for comparing investments held over different time periods.

Does CAGR mean my investment grew steadily every year?

No, CAGR is a smoothed average — your investment likely had some years of higher and lower actual returns that averaged out to the CAGR over the full period, not a constant year-by-year growth rate.

This calculator is provided for general informational and estimation purposes only. Results should not be treated as professional financial, tax, legal, medical, or engineering advice. Always verify critical calculations with a qualified professional or official source before making decisions.