CAGR Calculator
Find the compound annual growth rate (CAGR) of any investment. Enter the beginning value, ending value, and number of years to calculate the smoothed annualized return — the constant rate that would take you from start to finish.
Educational purposes only.
CAGR represents a smoothed historical rate and does not predict future performance. Actual year-to-year returns may vary significantly.
Educational purposes only. These calculators illustrate concepts and do not constitute investment advice. Read our disclaimer
StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.How It Works
Enter beginning value
The starting value of your investment at the beginning of the period.
Enter ending value
The current or final value of your investment at the end of the period.
Enter time period
The number of years between the beginning and ending values.
See your annualized return
View CAGR percentage, total return, and absolute gain or loss.
Frequently Asked Questions
CAGR stands for Compound Annual Growth Rate. It measures the smoothed annualized return of an investment over a period of time. Unlike simple average return, CAGR accounts for compounding — it tells you what constant annual return would have been needed to get from the starting value to the ending value.
The CAGR formula is: CAGR = (Ending Value / Beginning Value)^(1/Years) - 1. For example, if $10,000 grew to $20,000 over 7 years: (20000/10000)^(1/7) - 1 = 0.1041, or about 10.41% per year. This means a constant 10.41% annual return compounded over 7 years would produce the same result.
Average return simply adds up yearly returns and divides by the number of years. CAGR accounts for compounding. For example: if an investment goes up 50% one year and down 50% the next, the average return is 0% — but you actually lost 25% (100 → 150 → 75). CAGR correctly shows the annualized loss.
It depends on the asset class and time period. The S&P 500 has historically returned roughly 10% CAGR before inflation over long periods. Individual stocks can have much higher or lower CAGR. Bonds typically have 4-6% CAGR. Savings accounts are usually 1-5%. Higher CAGR generally comes with higher risk.
Yes. If your ending value is lower than your beginning value, CAGR will be negative — meaning your investment lost value on an annualized basis. For example, if $10,000 became $8,000 over 5 years, the CAGR would be about -4.4% per year.