This tool calculates the mean annual growth rate of an investment over a specified time period longer than one year, providing a smoothed rate of return.
Your estimated CAGR is:
14.87%
Note: CAGR assumes the investment compounded steadily over the period and does not account for investment risk or volatility.
CAGR measures the return on an investment over multiple years, smoothing out volatility.
Formula: CAGR = [(Ending Value / Beginning Value)^(1 / Years)] - 1
CAGR = [(Ending Value / Beginning Value)^(1 / Years)] - 1
Example: Initial investment of $10,000 growing to $15,000 over 5 years.
A 'good' CAGR depends on the asset class; for stocks, 8-12% is often considered strong, while for savings, it is lower.
No, CAGR only measures returns and does not reflect the investment risk or volatility experienced during the period.
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