What is a good CAGR for investments?

The S&P 500 has returned approximately 10% CAGR historically (7% inflation-adjusted). Individual stocks can vary from negative to 30%+.

How does CAGR differ from average annual return?

CAGR smooths volatile returns into a single steady rate. If a fund returns +50% then -33%, average = 8.5% but CAGR = 0% — CAGR reflects actual wealth change.

What inputs does CAGR need?

Beginning value, ending value, and number of years. For a portfolio that grew from $50,000 to $92,000 in 8 years: CAGR = (92,000/50,000)^(1/8) - 1 approximately 7.9%.

Investment Return CAGR Calculator

Calculate Compound Annual Growth Rate: CAGR = (Ending Value / Beginning Value)^(1/years) - 1. Standardizes multi-year returns for comparison.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate Compound Annual Growth Rate: CAGR = (Ending Value / Beginning Value)^(1/years) - 1. Standardizes multi-year returns for comparison. Use the cagr calculator result to inform your calculation.

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Investment Return CAGR Calculator

How to Use

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Frequently Asked Questions

What is a good CAGR for investments?

How does CAGR differ from average annual return?

What inputs does CAGR need?