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Investment Return Calculator (CAGR)

Calculate your annualized investment return and compare performance against market benchmarks. Enter your beginning and ending portfolio values along with the time period to calculate your annualized return.

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Optional — include dividends or distributions
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Understanding CAGR (Compound Annual Growth Rate)

CAGR stands for Compound Annual Growth Rate — it represents the rate at which an investment would have grown if it had grown at a steady rate throughout the entire period. It's one of the most widely used metrics in finance for comparing investment performance.

The CAGR Formula

CAGR = (Ending Value / Beginning Value)^(1/Years) − 1. This formula smooths out the volatility of year-to-year returns and gives you a single, comparable number. It's especially useful when comparing investments with different time horizons.

CAGR vs. Average Annual Return

CAGR is different from average annual return. If an investment goes up 50% one year and down 50% the next, the average annual return is 0%, but the CAGR is actually −13.4% (because you'd end up with only $75 from a $100 starting point). CAGR always reflects your actual experience as an investor.

The Rule of 72

  • Quick doubling estimate: Divide 72 by your annual return to estimate how many years it takes to double your money.
  • At 7% CAGR: Your money doubles approximately every 10.3 years.
  • At 10% CAGR: Your money doubles approximately every 7.2 years.
  • At 12% CAGR: Your money doubles approximately every 6 years.

How to Use This Calculator

Enter the value of your investment at the start and end of the period, any dividends or distributions received, and the number of years. The calculator will compute your CAGR, total return percentage, and absolute dollar gain. It also compares your performance against the S&P 500 historical average and a typical savings account rate.