Calculators & Converters
Investment Return (CAGR) Calculator
The CAGR Calculator finds the Compound Annual Growth Rate of an investment -- the smoothed annual rate that would take it from its starting value to its ending value over a given number of years.
CAGR is a standard way to compare the performance of different investments over different time periods on a like-for-like basis.
How to Use the Investment Return (CAGR) Calculator
- Open the Investment Return (CAGR) Calculator.
- Enter the investment's initial value.
- Enter its final value.
- Enter the number of years between the two.
- Read the annualized CAGR percentage.
Frequently Asked Questions
How is CAGR different from average annual return?
CAGR smooths out volatility by measuring growth as if it happened at a steady rate every year, while a simple average of yearly returns can be skewed by particularly good or bad years.
Can CAGR be negative?
Yes -- if the final value is lower than the initial value, the calculator will show a negative CAGR, indicating the investment lost value over the period.
Does this account for additional contributions during the period?
No, this calculates CAGR purely from a starting and ending value. If you added money along the way, the result won't reflect your true personal rate of return.