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CAGR Calculator — Compound Annual Growth Rate
Calculate CAGR for any investment, business revenue, or portfolio. Compare against benchmarks to see if your investment is outperforming.
Solve For
CAGR
9.60%
CAGR
9.60%
Start Value
$10,000
Final Value
$25,000
Total Return
150.0%
Growth Projection
Benchmark Comparison
Analysis & insights
$0 grew to $25,000 over 10 years — a compound annual growth rate of 9.6%. Total return: 150.0%. Above inflation, but below long-term equity returns. Appropriate for shorter horizons or lower-risk asset classes.
Market-rate return
9.6% CAGR is consistent with the long-term S&P 500 average (~10%).
Risk & benchmark gauge
Current band
Market range
9.6% CAGR
Industry benchmarks
- Your CAGR9.6%
- US inflation (long-term)~3%
- High-yield savings4-5%
- S&P 500 long-term~10%
- Years held10
- Total return150.0%
Key insights
CAGR = "smoothed" growth
CAGR pretends every year had the same return. Real-world results bounce around year-to-year — same CAGR can have wildly different volatility. Use CAGR to compare returns; use standard deviation to compare risk.
Always compare CAGR to risk-free + benchmark
A 6% CAGR sounds OK until you remember the risk-free rate (Treasuries) was 5% and the S&P returned 10%. CAGR alone is meaningless without context.
Recommended actions(3)
Subtract fees, taxes, and inflation
High priorityNominal CAGR overstates your real return. A 10% nominal CAGR with 1% fees + 24% capital gains tax + 3% inflation = ~3.5% real return. Big difference.
Use CAGR to compare similar-period investments
Medium priorityCAGR comparisons are meaningful only when timeframes are equal. A 5-year CAGR can't be compared to a 1-year CAGR.
For projections, use conservative assumptions
Medium priorityFor retirement planning, use 5-7% real (after-inflation) return rather than nominal 10%. Conservative inputs → conservative results → no surprises.
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This tool is for educational purposes only and does not constitute financial, tax, or investment advice. Consult a qualified financial professional for advice specific to your situation.