CAGR calculator: compound annual growth rate
Enter a starting value, an ending value and the number of years to get the compound annual growth rate, or work out the final value at a given rate. Then compare it with what real ETFs returned over similar periods.
- CAGR
- +9.60%
- Total return
- +150.0%
- Multiple
- 2.50×
- Gain
- 15,000
Compared with real ETFs
Your CAGR of +9.6% a year against the annualised returns of popular ETFs over the last 10 years (the period closest to yours), with dividends reinvested.
| ETF | 1Y | 3Y a yr | 5Y a yr | 10Y a yr |
|---|---|---|---|---|
| SPY SPDR S&P 500 ETF Trust | +16.6% | +23.1% | +12.7% | +15.4% |
| QQQ Invesco QQQ Trust | +19.5% | +26.6% | +14.5% | +20.6% |
| VTI Vanguard Total Stock Market ETF | +16.0% | +22.7% | +11.5% | — |
| VWCE Vanguard FTSE All-World UCITS ETF (Acc) | +22.0% | +19.5% | +11.5% | — |
| SWDA iShares Core MSCI World UCITS ETF (Acc) | +21.4% | +19.5% | +11.9% | +12.8% |
| AGG iShares Core U.S. Aggregate Bond ETF | −1.9% | +5.2% | −0.3% | +1.2% |
Trailing returns to the last close, each in the fund’s trading currency. Past returns do not predict future returns.
The formula
CAGR = (ending value ÷ starting value)^(1 ÷ years) − 1. For example, 10,000 that grows to 25,000 in 10 years has a CAGR of about 9.6% a year.
To go the other way, final value = starting value × (1 + CAGR)^years. Small differences in the rate compound into large differences over long periods.
Questions
What is CAGR?
The compound annual growth rate is the constant yearly rate that would take an investment from its starting value to its ending value over a period: (ending value ÷ starting value)^(1 ÷ years) − 1. It smooths out the ups and downs of the individual years.
How is CAGR different from the average return?
The simple average of yearly returns overstates growth when returns vary: +50% followed by −50% averages 0% but leaves you with 75% of the money. CAGR is the rate that actually links the start and the end, so it is the right measure of how much an investment grew.
What does CAGR leave out?
Risk and the path: two investments with the same CAGR can have had very different falls along the way. It also ignores money added or withdrawn during the period; for regular contributions use the money-weighted return shown in the DCA calculator.
Where do the ETF returns come from?
They are total returns with dividends reinvested, computed from end-of-day prices to the last close, annualised for periods longer than a year and each in the fund’s trading currency.
More free tools
- Portfolio backtestUp to 5 ETFs on real monthly returns
- DCA calculatorMonthly investing with real returns
- Rolling returnsBest and worst 1–15 year periods
- Efficient frontierRisk and return of every mix of 2–3 ETFs
- Drawdown recoveryHow long falls took to recover
- Retirement calculatorMonte Carlo on historical returns
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.