CAGR & Investment Return Calculator
Enter what you paid, what it is worth now and how long you held it. You get the compound annual growth rate, the fairest way to compare returns across different time periods.
CAGR formula
CAGR = (Ending value ÷ Starting value)1 / years − 1
CAGR is the steady yearly rate that would turn your starting value into your ending value. It smooths out volatility, so it's ideal for comparing an investment you held 3 years with one you held 10. It hides the ride, though: a stock that fell 50% then rose 100% has a CAGR of 0%.
CAGR vs. average annual return
The simple average of yearly returns overstates real growth. +50% then −50% averages 0%, yet you're down 25%. CAGR always reflects what actually happened to your money.
Common questions
What is a good CAGR for a stock?
The S&P 500 has a long-run CAGR of roughly 10% a year in nominal terms. Beating that consistently, after fees, is hard. Most professional funds fail to over 15-year periods.
Should I include dividends in CAGR?
Yes, if you want total return. This calculator adds dividends received to the ending value, as if you held them in cash. Reinvesting them would compound slightly more.