CAGR Calculator
Calculate the compound annual growth rate of your investments. See how your portfolio has truly performed over time, smoothing out year-to-year volatility into a single annualised return figure.
Calculate Your CAGR
Enter your investment values and time period to calculate the compound annual growth rate.
You can enter decimals for partial years (e.g., 2.5 for two and a half years)
Enter values above to calculate your CAGR
What is CAGR?
CAGR stands for Compound Annual Growth Rate. It's the rate of return that would take an investment from its initial value to its final value, assuming the investment compounds at a steady rate each year over a given period.
CAGR "smooths out" volatility — your actual returns might swing wildly from year to year, but CAGR gives you one number that represents the equivalent steady annual growth. It answers the question: "What constant annual return would have produced this result?"
Example: If you invested €10,000 and after 5 years it's worth €16,105, your CAGR is 10%. This means your investment grew as if it had returned exactly 10% every single year, even if the actual yearly returns were 15%, -5%, 20%, 8%, and 12%.
Why Use CAGR?
Smooths Volatility
Unlike simple averages, CAGR accounts for compounding and gives you a single, realistic annual growth figure regardless of year-to-year swings.
Apples-to-Apples Comparison
Compare investments with different time horizons, starting values, or volatility levels on a level playing field.
Goal Setting
Use CAGR to set realistic expectations for future growth based on historical performance. If your portfolio has a CAGR of 8%, you can project what it might be worth in 10 years.
Benchmark Your Portfolio
Compare your portfolio's CAGR against benchmarks like the S&P 500 (~10% historically) or MSCI World to see if you're on track.
How to Use This Calculator
Using this CAGR calculator is straightforward: enter the beginning value of your investment, enter the current or ending value, and enter the number of years. Your CAGR is calculated instantly as you type.
Note: This calculator shows the raw CAGR between two values. It does not account for additional contributions, withdrawals, dividends, or fees. For a complete picture of your portfolio's true annualised return — including cash flows, dividends, and multi-currency effects — TrackinV's performance tracking calculates this automatically.
CAGR vs Other Return Metrics
CAGR is one of several ways to measure investment returns. Each metric answers a different question, and knowing when to use which one prevents misleading conclusions about your portfolio's performance.
CAGR vs simple average return
Simple average return adds up yearly returns and divides by the number of years. CAGR accounts for compounding. The difference matters: if an investment gains 50% one year and loses 50% the next, the simple average return is 0% — but you've actually lost 25% of your money. CAGR would correctly show a negative return. For volatile investments, always prefer CAGR over simple averages.
CAGR vs time-weighted return (TWR)
CAGR measures compound growth between two points: a start value and an end value. It doesn't account for deposits, withdrawals, or dividends in between. TWR adjusts for all cash flows, measuring your actual investment skill independent of when you added or withdrew money. If you regularly contribute to your portfolio, TWR is more accurate than CAGR. TrackinV calculates TWR automatically from your transaction history.
CAGR vs IRR (internal rate of return)
IRR is the annualised return that accounts for all cash flows — contributions, withdrawals, dividends — weighted by their timing. Unlike CAGR, IRR reflects the impact of when you invested. A large deposit just before a rally boosts your IRR; the same deposit just before a correction hurts it. IRR is useful for evaluating your overall wealth growth, while TWR is better for measuring investment decisions.
When to use CAGR
CAGR works best for comparing investments over the same time period when there are no intermediate cash flows — comparing fund performance, benchmarking historical returns, or projecting future growth. For your actual portfolio with regular contributions, TWR or Modified Dietz provides a more accurate picture.
Go Beyond a Simple Calculator
TrackinV automatically calculates your portfolio's CAGR, time-weighted return, and Modified Dietz performance — factoring in every transaction, dividend, and currency conversion. No spreadsheets, no manual input.
Explore More TrackinV Features
Portfolio Performance
See your true return with time-weighted and Modified Dietz calculations.
Learn MoreBenchmark Comparison
Compare your portfolio against S&P 500, MSCI World, and custom benchmarks.
Learn MorePortfolio Analytics
Analyse your allocation, risk, and diversification across all your holdings.
Learn MoreFrequently Asked Questions
What is a good CAGR?
There's no universal 'good' CAGR — it depends on the asset class, risk level, and time period. As a rough guide: the S&P 500 has historically delivered around 10% CAGR (before inflation), while bonds typically deliver 3–5%. A portfolio CAGR above your relevant benchmark is generally considered good performance.
What is the difference between CAGR and average annual return?
A simple average return adds up yearly returns and divides by the number of years — but this ignores compounding and can be misleading. CAGR accounts for the compounding effect and tells you the actual equivalent annual rate needed to get from your starting value to your ending value. For volatile investments, CAGR is a much more accurate measure.
Does this calculator account for dividends, contributions, or fees?
No. This is a simple two-point calculator that only considers the beginning and ending values. It does not factor in additional contributions, withdrawals, dividends, or fees. For an accurate performance calculation that includes all cash flows and dividends, use a dedicated portfolio tracker like TrackinV.
Why does the currency selector not change the result?
CAGR is a percentage-based calculation — it's currency-agnostic. Whether your investment grew from €10,000 to €15,000 or from $10,000 to $15,000, the CAGR is the same. The currency selector only changes the symbol displayed next to your input values for your convenience.
Can I use CAGR for periods shorter than one year?
Technically yes, but annualising short-term returns can be misleading. A 5% return in one month would annualise to over 79%, which is almost certainly not sustainable. For periods under one year, the absolute return (total growth percentage) is usually a more honest and useful figure.
Is this financial advice?
No. This calculator is for informational and educational purposes only. CAGR is a useful metric but does not predict future performance. Past returns do not guarantee future results. Consult a qualified financial professional before making investment decisions.