Investment Return Calculator
Two modes: calculate CAGR from known start and end values, or project how an investment grows over time at a given annual return rate.
CAGR vs simple return
Simple return tells you total gain as a percentage. CAGR tells you the equivalent steady annual rate. An investment that doubles in 10 years has a 100% simple return but a CAGR of about 7.2% — because compounding means each year's gain builds on the previous year's gains.
CAGR is the standard metric for comparing investments held over different time periods. A fund with a 5-year CAGR of 9% outperformed one with a 3-year CAGR of 7% — but only if the time periods align. Always compare CAGRs over the same horizon.
Frequently asked questions
What is CAGR?
CAGR stands for Compound Annual Growth Rate. It expresses how much an investment grows per year on average, assuming gains are reinvested. Formula: CAGR = (End Value / Start Value)^(1/Years) − 1.
What is a good annual investment return?
The S&P 500 has averaged roughly 10% per year before inflation (about 7% after inflation) over long periods. A 6–8% real return is a commonly used planning assumption. Returns vary significantly by asset class and time horizon.
How is compound growth calculated?
Compound growth applies the return to the full balance each period. Future Value = Start Value × (1 + Rate)^Years. After each year, gains are added to the principal and earn returns themselves — this is the compounding effect.
Disclaimer: Projections assume a constant annual return and reinvested gains. Actual investment returns fluctuate and past performance does not guarantee future results. Not financial advice.