Finanzas

Calculate Your CAGR — Compound Annual Growth Rate

Instantly calculate CAGR—the annualized return rate for any investment. Perfect for comparing stocks, crypto, and real estate. Example: $10K to $20K in 7 years.

🗓️ Updated June 2026 Reviewed by Martín Rodríguez

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Reviewed by: Martín Rodríguez (editorial policy ) · Last reviewed: Jun 22, 2026

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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.

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.

CAGR Reference: Doubling Time & 10-Year Multiplier

CAGR	Doubles in (years)	10-Year Return Multiplier
3%	24 years	1.34×
5%	14 years	1.63×
7%	10 years	1.97×
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×

Fuente: Tabla de multiplicadores típicos incluida en la calculadora, basada en la fórmula CAGR = (Ending Value / Starting Value)^(1/years) − 1. Doubling time approximated via Rule of 72.

How it works

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 its ending value over a given period, assuming growth compounds smoothly every year. It's the standard metric for comparing investments with different time horizons — because a raw total return of 80% means very different things over 3 years vs. 10 years.

Real-world benchmark: The S&P 500 has delivered a historical CAGR of roughly 10–10.5% nominal (≈7% inflation-adjusted) over the long run, based on data from 1926 to present. This is the single most cited reference point when evaluating whether an investment "beats the market."

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How It's Calculated

CAGR = (Ending Value ÷ Starting Value)^(1 ÷ Years) − 1

Express as a percentage: multiply by 100.

Step-by-step example:

Starting value: $10,000

Ending value: $18,500

Period: 6 years

CAGR = (18,500 / 10,000)^(1/6) − 1 = 1.85^(0.1667) − 1 ≈ 10.8%

This means $10,000 growing at exactly 10.8% per year, compounded annually, reaches $18,500 in 6 years — even if the actual year-by-year returns were wildly uneven.

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Reference Table: CAGR Multipliers Over Time

CAGR	Doubles in	10-Year Return	20-Year Return
3%	24 years	1.34×	1.81×
5%	14 years	1.63×	2.65×
7%	10 years	1.97×	3.87×
10%	7 years	2.59×	6.73×
15%	5 years	4.05×	16.37×
20%	3.5 years	6.19×	38.3×
25%	3 years	9.31×	86.7×
50%	1.7 years	57.7×	3,325×

The 20-year column illustrates why small CAGR differences compound into enormous wealth gaps: the difference between 7% and 10% over 20 years is 3.87× vs. 6.73× — nearly double the outcome from just 3 extra percentage points annually.

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Rule of 72

To quickly estimate how many years it takes to double an investment: 72 ÷ CAGR%.

At 6%: 72 / 6 = 12 years

At 9%: 72 / 9 = 8 years

At 12%: 72 / 12 = 6 years

The Rule of 72 is an approximation — it's most accurate for rates between 6% and 10%. For very low rates (1–2%) or very high rates (>25%), it slightly underestimates the doubling time.

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What CAGR Does NOT Include

This is critical for making real decisions:

Inflation: A 10% nominal CAGR with 4% inflation is a 5.8% real CAGR — not 6%. Always distinguish nominal vs. real when comparing across decades or countries.

Taxes: Capital gains taxes, dividend taxes, and withholding taxes can reduce effective CAGR by 1–3+ percentage points depending on jurisdiction and account type.

Fees: A fund with 10% gross CAGR and 1.5% annual expense ratio delivers 8.5% net — over 20 years, that fee difference costs roughly 25% of final wealth.

Volatility / path dependency: Two portfolios can have identical CAGR with completely different risk profiles. One might have had a −50% drawdown in year 3; the other never dropped more than −10%.

Cash flows: CAGR only works correctly with a single lump sum invested at the start and nothing added or withdrawn. If there are multiple cash flows, CAGR produces a misleading number.

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Common Mistakes

Annualizing short periods: A stock that returns 20% in 3 months has a theoretical CAGR of ~107% — technically correct but meaningless as a forecast. Be skeptical of CAGRs based on less than 3 years of data.

Cherry-picking start/end dates: CAGR is extremely sensitive to when you start and stop the clock. A fund measured from a market bottom to a peak will show an inflated CAGR. Always check the full cycle or use rolling CAGR.

Confusing CAGR with average return: If an investment loses 50% one year and gains 50% the next, the arithmetic average return is 0% — but the actual CAGR is −13.4%. Arithmetic means always overstate true compound growth when returns vary.

Using CAGR with ongoing contributions: If you're investing monthly (dollar-cost averaging, pension contributions, etc.), CAGR doesn't apply. Use IRR or XIRR to account for the timing of each contribution.

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When to Use CAGR

Situation	Right metric
Single lump sum, no contributions	✅ CAGR
Comparing two funds over different periods	✅ CAGR
Regular contributions (monthly investing)	❌ Use IRR/XIRR
Comparing after fees & inflation	✅ CAGR, but adjust inputs
Business revenue growth (year-over-year)	✅ CAGR

CAGR is the right tool for benchmarking and comparison. For planning with real cash flows, layer in IRR, inflation adjustments, and net-of-fee returns to get a decision-quality number.

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.

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

Disclaimer: Los resultados son orientativos y no constituyen asesoramiento financiero individualizado. Antes de tomar decisiones con impacto, consultá con un asesor financiero registrado en la CNV o contador público matriculado.

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.

Sources & references

Methodology & trust

Editorial

Calculadora de finanzas revisada por el equipo editorial de Hacé Cuentas, contrastada con BCRA — Banco Central de la República Argentina, según nuestra política editorial y metodología.

Updates

Última revisión: June 22, 2026. Los parámetros se verifican periódicamente con las fuentes citadas.

Privacy

Calculations run 100% in your browser. We do not store or transmit your data.

Limitations

Indicative results. For critical decisions, consult a professional.

📌 How to cite this calculator

Rodríguez, M. (2026). Calculate Your CAGR — Compound Annual Growth Rate. Hacé Cuentas. https://hacecuentas.com/cagr-calculator

Contenido bajo licencia CC-BY 4.0 — reutilizable citando la fuente con enlace a Hacé Cuentas.

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