Cut through lumpy returns: find the single yearly growth rate that connects an investment's start and end values.
Illustrative projection using the assumptions you entered. Market returns are not guaranteed; actual results will differ. This is an educational tool, not financial advice.
CAGR — Compound Annual Growth Rate — answers a simple question: at what steady yearly rate would this investment have had to grow to get from its starting value to its ending value? Real investments move up and down; CAGR smooths that journey into one comparable number.
CAGR is the right way to compare investments held for different periods — a fund that returned 80% over 4 years (15.8% CAGR) genuinely beat one that returned 100% over 6 years (12.2% CAGR), even though the second headline number looks bigger. It is also how mutual fund returns are reported for periods above one year.
Use it to evaluate your own portfolio: enter what you invested and what it is worth today, and compare the result honestly against inflation and against a simple index fund. One caution — CAGR says nothing about the risk or the ups and downs taken on the way.
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