📈 CAGR Calculator
Calculate Compound Annual Growth Rate between any two values over a time period.
How CAGR Works
CAGR (Compound Annual Growth Rate) represents the smooth annualized rate at which an investment would have grown from start to end, assuming it grew at the same rate every year. Formula: CAGR = (End Value / Start Value)^(1/Years) − 1. It's used to compare investments of different durations on a level playing field.
CAGR Benchmarks
S&P 500 historical average: ~10% CAGR. Warren Buffett / Berkshire Hathaway: ~20% over decades. Real estate: 3–7%. High-growth startups target 30–100%+ CAGR. A 7% CAGR doubles money every ~10 years (Rule of 72: 72 ÷ growth rate = years to double).
People Also Ask
For individual stocks, a 15–20%+ CAGR over 5+ years is considered strong — significantly outperforming the S&P 500 historical average of ~10%. Very few investors sustain 20%+ CAGR over the long term. For business revenue, early-stage SaaS targets 3x–5x revenue over 3 years (~44–71% CAGR).
CAGR represents the smoothed annualized rate, accounting for compounding. Average annual return is the arithmetic mean of yearly returns — it ignores compounding and can be misleading. If a stock drops 50% then gains 50%, the average return is 0% but the actual value is 75% of the original (a −25% total return). CAGR would show the true −13.4%/year result.