Finance

Calculate Your CAGR — Compound Annual Growth Rate🇦🇷

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CAGR (Compound Annual Growth Rate) is the annualized return rate an investment would need to grow from its starting value to ending value over a given period. It smooths out volatility and gives you a uniform rate to compare investments fairly.

Last reviewed: May 12, 2026 Verified by Hacé Cuentas Team Source: BCRA — Banco Central de la República Argentina, AFIP/ARCA — Administración Federal de Ingresos Públicos, INDEC — Instituto Nacional de Estadística y Censos 100% private

When to use this calculator

You want to know the true annualized return of your investment.
You're comparing returns across different time periods.
You need to calculate how much your portfolio grew per year.
You're establishing a performance benchmark.
You're projecting future growth based on historical CAGR.

Real Example: $10,000 to $25,000 Over 5 Years

Data: starting value = $10,000, ending value = $25,000, period = 5 years.
Multiplier: $25,000 / $10,000 = 2.5×.
Total return: (2.5 - 1) × 100 = 150%.
CAGR formula: (2.5)^(1/5) - 1 = 1.2011 - 1.
CAGR result: 20.11% annual return.
Doubling time (Rule of 72): 72 / 20 = ~3.6 years to double.

Result: CAGR = 20.11% — an annualized return rate that would have doubled your capital in 3.6 years.

How it works

1 min read

What is CAGR

CAGR (Compound Annual Growth Rate) is the annualized compound return rate an investment would need to grow from its starting value to ending value over a given period. It's the standard metric for comparing investments with different time horizons.

Formula

CAGR = (Ending Value / Starting Value)^(1/years) - 1

Express as a percentage: multiply by 100.

Table of Typical Multipliers

CAGR	Doubles in	10-Year Return
3%	24 years	1.34×
5%	14 years	1.63×
7%	10 years	1.97× (nearly doubles)
10%	7 years	2.59×
15%	5 years	4.05×
20%	3.5 years	6.19×
25%	3 years	9.31×
50%	1.7 years	57.7×

Rule of 72

To quickly estimate how many years it takes to double an investment: 72 / CAGR%. Example: at 6%, money doubles in 72/6 = 12 years.

When to Use & Common Mistakes

CAGR hides volatility: you could have 10% CAGR with 50% drawdowns in between.

Total return ≠ CAGR: always annualize for comparison.

Doesn't apply with contributions: use IRR/XIRR if you're adding money.

For constant portfolio rebalancing, check our portfolio rebalancing calculator.

Frequently asked questions

What does CAGR stand for?

CAGR stands for Compound Annual Growth Rate—the annual return rate that produces the same result as actual investment returns, which may be volatile.

Is CAGR the same as average return?

No. Simple average is misleading. If you gain 100% then lose 50%, your average is +25% but your CAGR is 0%.

What is the S&P 500's historical CAGR?

Historically ~10% nominal (~7% real, adjusted for inflation) over 20+ year periods.

What CAGR has Bitcoin achieved?

From 2013 to 2025: ~60% CAGR (extraordinary). But with -80% drawdowns, it's not for everyone.

Can I use CAGR to project future returns?

Yes, but carefully. Past returns don't guarantee future results. Use CAGR as a reference, not a guarantee.

Does CAGR include dividends?

Only if you include dividends in your ending value. For total return, add reinvested dividends.

Can I calculate CAGR for periods less than 1 year?

Technically yes, but it's not ideal. CAGR is designed for multi-year periods.

What's considered a good CAGR for stocks?

The S&P 500 averages ~10% annually. 15%+ is excellent, 5-10% is solid, under 5% is modest.