CAGR Calculator
Calculate Compound Annual Growth Rate from beginning value, ending value, and time period.
CAGR
20.11%
Total Return
+150.00%
Absolute Return
$15,000.00
Beginning Value$10,000.00
Ending Value$25,000.00
Period5 years
Growth Multiplier2.50x
Year-by-Year Growth at 20.1% CAGR
| Year | Value | Gain |
|---|---|---|
| Year 1 | $12,011.24 | +$2,011.24 |
| Year 2 | $14,427.00 | +$4,427.00 |
| Year 3 | $17,328.62 | +$7,328.62 |
| Year 4 | $20,813.83 | +$10,813.83 |
| Year 5 | $25,000.00 | +$15,000.00 |
Compare Growth Rates (5 years, starting at $10,000.00)
5% CAGR
$12,762.82
+28%
8% CAGR
$14,693.28
+47%
10% CAGR
$16,105.10
+61%
12% CAGR
$17,623.42
+76%
15% CAGR
$20,113.57
+101%
20% CAGR
$24,883.20
+149%
Understanding CAGR
CAGR Formula
CAGR = (Ending Value / Beginning Value)^(1/Years) - 1. It smooths out volatile returns into a single annual rate.
CAGR vs Average Return
CAGR accounts for compounding. Average return does not. CAGR is always lower than or equal to arithmetic average for volatile investments.
Rule of 72
Divide 72 by the CAGR to estimate how many years it takes to double your investment. At 12% CAGR, money doubles in ~6 years.
Typical Benchmarks
S&P 500 historical CAGR: ~10%. Real estate: ~3-5%. Bonds: ~2-4%. These are long-term averages.