CAGR Calculator

Beginning Value ($)

Ending Value ($)

Number of Years

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

Principal

Growth

$0.00$12.5K$25.0K

Year-by-Year Projection

Year	Value	Annual Growth	Total 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)

CAGR	Final Value	Total 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.

Beginning Value ($)

Ending Value ($)

Number of Years

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

Principal

Growth

$0.00$12.5K$25.0K

Year-by-Year Projection

Year	Value	Annual Growth	Total 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)

CAGR	Final Value	Total 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.