CAGR / investment return calculator

CAGR / investment return calculator: the basics

Compare a beginning and ending investment value, including losses, and express their change as a smoothed annual rate.

How to use the inputs

• Beginning value: Enter a positive starting value from 0.01 to 1 billion.
• Ending value: Enter the final value from zero to 1 billion. Values below the starting amount represent a loss.
• Investment period: Enter 0.1 to 60 years. Fractional years such as 2.5 are supported.

Change an input to update the results. Add up to four scenarios to compare separate assumptions; reset affects only the selected scenario.

Understanding the results

• Total gain or loss is ending value minus beginning value. Total return is that gain or loss as a percentage of the beginning value.
• CAGR is the constant annual compound rate that links the two values. Growth multiple is ending value divided by beginning value; 1× means unchanged.
• Comparison bars show the size of CAGR; their text preserves negative signs. They do not depict an investment’s actual path.

The formula, in words

Let B be beginning value, E ending value and Y years. Growth multiple = E / B. Gain = E − B. Total return (%) = (E / B − 1) × 100.

CAGR (%) = ((E / B) raised to (1 / Y) − 1) × 100. If E is zero, total return and CAGR are both −100%.

Assumptions and limits

• There are no interim contributions or withdrawals. Only the starting and ending values and the duration are considered; this is not a money-weighted return calculation.
• CAGR assumes equivalent annual compounding, including fractional years. It smooths changes and says nothing about volatility or the order of gains and losses.
• Fees, taxes and inflation are not added or deducted automatically. Enter values reflecting the costs you intend to include. Historical or example returns do not guarantee future returns.

Currency results display whole units; other numbers show at most one decimal place. Calculations keep full precision unless whole units must be rounded up for break-even. Rounded figures may not add up exactly.

Results of a trillion or more use scientific notation with up to three decimal places; for example, 1E12 means one trillion. Very small gains may round to zero.

Examples below use USD and local number formatting. Country selection changes currency labels, formatting and terminology; it does not convert money or automatically apply local tax or lender rules.

Worked example

This fixed example uses the calculator’s default inputs; it does not change when you edit a scenario. Any example interest or return rate is an assumption, not a guaranteed outcome.

Beginning value

USD 10,000

Ending value

USD 15,000

Investment period

5 years

USD 15,000 / USD 10,000 = 1.5×. The gain is USD 5,000, or 50% overall. Taking the fifth root of 1.5 and subtracting 1 gives 8.4% per year.

CAGR

8.4%

Total gain or loss

USD 5,000

Total return

50%

Growth multiple

1.5×

Common questions