Average Return (CAGR) Calculator
Calculate the Compound Annual Growth Rate (CAGR) of an investment over time.
Compound Annual Growth Rate
The Compound Annual Growth Rate (CAGR) measures the mean annual growth rate of an investment over a specified period longer than one year. It represents one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value.
Why not just average the yearly returns?
Averaging yearly returns (arithmetic mean) ignores the effects of compounding and can give a false impression of actual profitability. CAGR provides a smoothed "constant rate" that would get you from the starting balance to the ending balance.
Disclaimer: This calculator is for educational and informational purposes only. It is not a substitute for professional financial advice. Results are estimates based on the information provided and may not reflect actual outcomes. Please consult with a qualified financial advisor, accountant, or tax professional before making any financial decisions. Past performance does not guarantee future results.