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CAGR Calculator (Compound Annual Growth Rate)

The Compound Annual Growth Rate (CAGR) is the primary metric used by Wall Street investors, portfolio managers, and entrepreneurs to measure smoothed annual returns over multiple years. Filter out market volatility to find your true geometric annual growth rate and compare performance against historical S&P 500 and US Treasury benchmarks.

FINANCIAL METRICS & VALUATION

CAGR Calculator (Compound Annual Growth Rate)

Measure the true smoothed annual growth rate of stocks, portfolios, business revenues, or real estate assets across multiple years.

5 years
1 ano5 anos10 anos20 anos40 anos

Market Benchmark Comparison

S&P 500 Historical Average (~10.0% / yr)

Your investment outperformed this historical benchmark!

+ SUPEROU
US 10-Year Treasury Yield (~4.2% / yr)

Your investment outperformed this historical benchmark!

+ SUPEROU
CAGR (Compound Annual Growth Rate)
+20.11% a.a.

CAGR represents the geometric progression ratio that provides a constant rate of return over the time period, filtering out volatility.

Absolute Total Return:
+150%
Net Capital Gain / Profit:
$15,000

Year-by-Year Capital Trajectory

YearProjected ValueCumulative Gain
Início$10,000$0
Ano 1$12,011+$2,011
Ano 2$14,427+$4,427
Ano 3$17,329+$7,329
Ano 4$20,814+$10,814
Ano 5$25,000+$15,000

How it works

1

Enter your beginning investment value (or starting revenue).

2

Provide ending portfolio balance and duration in years.

3

Review annualized CAGR (%), total absolute gain %, net dollar profit, and year-by-year trajectory.

Frequently asked questions

What is the formula for calculating CAGR?

CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) - 1.

Why is CAGR preferred over average annual return?

Arithmetic averages distort returns when investments suffer downturns (e.g., +50% followed by -50% equals an arithmetic average of 0%, but represents an actual 25% net loss). CAGR calculates the true compound rate of return.

Is this tool free?

Yes. The site is supported by ads, so you never pay or need to create an account.

Does it work on mobile?

Yes. The page adapts to your screen and does not require installing any app.