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CAGR Calculator

Free CAGR (Compound Annual Growth Rate) calculator for investments. Enter beginning value, ending value, and time period to calculate the annualized growth rate. Includes reverse calculator, comparison with historical benchmarks, and year-by-year projections.

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How to Use CAGR Calculator

  1. 1Enter the beginning value of your investment.
  2. 2Enter the ending value and number of years.
  3. 3View the CAGR, total return, and absolute gain.
  4. 4Compare with historical benchmarks.

Frequently Asked Questions

CAGR (Compound Annual Growth Rate) is the rate of return that an investment would need to grow from its beginning balance to its ending balance, assuming profits were reinvested at the end of each year. It smooths out volatility to show a consistent annual growth rate.

CAGR = (Ending Value / Beginning Value)^(1/Years) - 1. For example, if $10,000 grows to $25,000 over 5 years: CAGR = (25,000/10,000)^(1/5) - 1 = 20.1% per year.

Context matters. The S&P 500 historically delivers ~10% CAGR (7% inflation-adjusted). A CAGR of 15%+ over 5+ years is excellent. Real estate averages 3-5% CAGR. Bonds average 4-6%. Compare against these benchmarks for your asset class.

Using the CAGR Calculator is simple: visit the tool page, enter your data or input into the provided fields, and get instant results. No downloads, installations, or sign-ups are required. The tool runs directly in your web browser for maximum convenience.

Yes, after running your calculation you can copy the results to your clipboard or take a screenshot. The CAGR Calculator displays a detailed breakdown so you can easily record or share your numbers. No account is required to use or save results.

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About CAGR Calculator

Free CAGR (Compound Annual Growth Rate) calculator for investments. Enter beginning value, ending value, and time period to calculate the annualized growth rate. Includes reverse calculator, comparison with historical benchmarks, and year-by-year projections.

NexTool's CAGR Calculator is completely free to use with no sign-up required. Your data is processed directly in your browser and never sent to our servers, ensuring complete privacy and instant results.

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Compound Annual Growth Rate
20.11%
CAGR
20.11%
Total Return
+150.00%
Absolute Gain
+$15,000.00
CAGR = ($25,000.00 / $10,000.00)1/5 - 1 = 20.11%
Growth Over Time
Year 0
Value: $10,000.00
Growth: $0.00
Year 1
Value: $12,011.24
Growth: $2,011.24
Year 2
Value: $14,427.00
Growth: $2,415.75
Year 3
Value: $17,328.62
Growth: $2,901.62
Year 4
Value: $20,813.83
Growth: $3,485.21
Year 5
Value: $25,000.00
Growth: $4,186.17
Y0
Y1
Y2
Y3
Y4
Y5
Principal
Growth
$0.00$12.5K$25.0K
Year-by-Year Projection
YearValueAnnual GrowthTotal Gain
0$10,000.00-$0.00
1$12,011.24$2,011.24$2,011.24
2$14,427.00$2,415.75$4,427.00
3$17,328.62$2,901.62$7,328.62
4$20,813.83$3,485.21$10,813.83
5$25,000.00$4,186.17$15,000.00
What If? CAGR Comparison (5 years)
CAGRFinal ValueTotal Gain
3%$11,592.74+$1,592.74
5%$12,762.82+$2,762.82
7%$14,025.52+$4,025.52
8%$14,693.28+$4,693.28
10%$16,105.10+$6,105.10
12%$17,623.42+$7,623.42
15%$20,113.57+$10,113.57
20%closest$24,883.20+$14,883.20
Starting from $10,000.00 over 5 years, compounded annually.
Historical Benchmarks ($10,000.00 over 5 years)
S&P 500~10% avg
$16,105.10
U.S. large-cap stocks historical average+$6,105.10
Real Estate~4% avg
$12,166.53
Residential real estate appreciation+$2,166.53
Bonds~5% avg
$12,762.82
Investment-grade bond index average+$2,762.82
Inflation~3.5% avg
$11,876.86
Average U.S. CPI inflation+$1,876.86
Gold~7.5% avg
$14,356.29
Long-term gold price appreciation+$4,356.29
Savings Account~1.5% avg
$10,772.84
High-yield savings typical rate+$772.84
Historical averages are approximate long-term returns. Past performance does not guarantee future results.
How CAGR is Calculated
CAGR Formula
CAGR = (Ending Value / Beginning Value) ^ (1 / Years) - 1
CAGR smooths out volatile year-over-year returns into a single steady growth rate.
Reverse CAGR (Future Value)
Future Value = Beginning Value x (1 + CAGR) ^ Years
Projects how much an investment will grow at a given annual rate.
CAGR vs. Average Return
CAGR accounts for compounding, unlike simple average returns. An investment that drops 50% one year and gains 100% the next has an average return of 25% but a CAGR of 0%, reflecting the true outcome.