CAGR (Compound Annual Growth Rate) is the smoothed annual rate of return that represents how an investment grew from its beginning to ending value over a period.

CAGR vs average return?

CAGR accounts for compounding and gives one consistent annual rate. Simple average return can be misleading when returns vary year to year.

Portfolio CAGR Calculator

📝Inputs

📊Results

Enter your values and click Calculate to see results.

Learn About Portfolio CAGR

What is this calculator?

CAGR measures the consistent annual growth rate of an investment, portfolio, or business metric between a starting and ending value over time.

How does it work?

Enter your starting portfolio value, ending value, and number of years. The calculator computes CAGR, absolute return, and total profit.

Formula

$$\text{CAGR} = \left(\frac{\text{Ending Value}}{\text{Beginning Value}}\right)^{\frac{1}{\text{Years}}} - 1$$

When should you use it?

Evaluating portfolio performance over multiple years
Comparing investments with different time horizons
Reporting annualized returns to stakeholders

Example

A portfolio grows from $10,000 to $25,000 over 5 years. CAGR ≈ 20.11% with a total profit of $15,000 (150% absolute return).

FAQ

Does CAGR include contributions?

Can CAGR be negative?