📈 CAGR Calculator
Calculate the Compound Annual Growth Rate of any investment or business metric.
CAGR Formula
CAGR = (Ending Value ÷ Beginning Value)^(1 ÷ Years) − 1
Example: Investment grows from $10,000 → $25,000 over 5 years:
CAGR = (25,000 ÷ 10,000)^(1÷5) − 1 = 20.11%
CAGR Benchmarks
| Asset Class | Typical CAGR | Rating |
|---|---|---|
| Savings Account | 0.5–2% | Safe, low return |
| Bonds | 2–4% | Conservative |
| S&P 500 (historical) | 7–10% | Good benchmark |
| Growth Stocks | 15–25% | Excellent |
| Venture Capital | 25%+ | High risk/reward |
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) measures the mean annual growth rate of an investment over multiple years, assuming compounding. It's the single rate that takes you from start to end value.
What is a good CAGR?
For stocks: 7–10% matches the S&P 500 long-term average. 15–20% for individual stocks is excellent. For a business, 10–20% revenue CAGR annually is considered strong growth.
What is the CAGR formula?
CAGR = (Ending Value / Beginning Value)^(1/Years) − 1. An investment from $10K → $20K in 5 years: (20000/10000)^(0.2) − 1 = 14.87% CAGR.
Can CAGR be negative?
Yes. If your investment lost value, CAGR will be negative — showing the annual rate of loss. For example, $10K → $7K over 3 years = −11.1% CAGR.