CalVerse.co — CAGR Calculator
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📈 CAGR Calculator
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What is CAGR and How to Calculate It
CAGR (Compound Annual Growth Rate) is the rate at which an investment would have grown if it grew at a perfectly steady rate each year. It's the gold standard for comparing investment returns because it accounts for compounding — the key driver of long-term wealth creation.
CAGR = (End Value ÷ Start Value)^(1 ÷ Years) − 1
Example: $10,000 → $25,000 in 10 years = (25000/10000)^(1/10) − 1 = 9.6% CAGR
Example: $10,000 → $25,000 in 10 years = (25000/10000)^(1/10) − 1 = 9.6% CAGR
Why CAGR Beats Average Annual Return
If a stock gains 100% one year and loses 50% the next, the average return is 25% — but you've broken even. CAGR correctly reports 0% because it measures actual end value vs start value. Always use CAGR to evaluate real investment performance over multiple years.
📋 Live Summary
CAGR—
Start Value—
End Value—
Total Gain—
Doubles in—
📊 Benchmark CAGRs
S&P 500 (hist.)10.5%
NASDAQ (hist.)13.2%
Gold (20yr)8.1%
US Bonds4.2%
HYSA (2026)4.8%
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Frequently Asked Questions
What is CAGR?+
CAGR (Compound Annual Growth Rate) is the rate at which an investment would have grown if it grew at a perfectly steady annual rate. It's the most accurate way to compare investment performance across different time periods. Formula: CAGR = (End Value / Start Value)^(1/Years) − 1.
What is a good CAGR for investments?+
A good CAGR depends on the asset class. The S&P 500 has historically averaged about 10–11% CAGR. Individual stocks with 15–20%+ CAGR sustained over 10+ years are exceptional. Bonds average 4–6%, real estate 6–8%. A personal portfolio CAGR of 8–12% over long periods is solid.
What is the difference between CAGR and average annual return?+
Average annual return simply averages yearly figures, while CAGR accounts for compounding and gives the true geometric mean. If a stock gains 100% one year and loses 50% the next, average return is 25% — but CAGR correctly shows 0% because you've ended where you started. Always use CAGR for multi-year comparisons.
What is the Rule of 72?+
Divide 72 by the CAGR to estimate years to double your money. At 10% CAGR, money doubles in ~7.2 years. At 6%, ~12 years. At 12%, ~6 years. The rule is accurate for rates between 2–20% and is a powerful mental math shortcut for evaluating investment offers.
How does CAGR compare to IRR?+
CAGR measures the growth of a single lump-sum investment from start to end. IRR (Internal Rate of Return) handles multiple cash flows — contributions, withdrawals, dividends — at different points in time. Use CAGR for simple start-to-end comparisons; use IRR for complex cash-flow scenarios like real estate or business investments.