CAGR Calculator

Calculate your Compound Annual Growth Rate (CAGR) to understand the true annual rate of return on your investments. CAGR smooths out volatility to show you consistent growth.

Calculator Inputs

Initial Value

$0 - $500,000

Ending Value

$0 - $500,000

Number of Periods (Years): 10 years

1 - 50 years

CAGR

0.00%

Total Gain

$15,000

150.0%

Total Return

$25,000

Ending Value

Growth Path at 0.00% Annual Rate

Why CAGR Matters

Clarity:CAGR smooths out yearly volatility to show the true average annual growth rate of your investment.
Comparison:Use CAGR to fairly compare investment performance across different time periods and investment types.
Reality Check:CAGR removes the noise of market fluctuations, showing you consistent, predictable growth.
Planning:Understanding CAGR helps you set realistic expectations for future investment performance.

Key Insights

The Formula: CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) - 1

What It Shows: A 0.00% CAGR means your investment grew at an average of 0.00% per year over 10 years.

Real-World Use: Stock market returns are typically reported as CAGR because it accounts for compounding and makes it easy to compare investments.

Power of Compounding: Even small differences in CAGR create massive differences in outcomes over time—this is the eighth wonder at work!

Explore Other Calculators

Compare CAGR with other financial tools to understand compounding in different contexts.

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