CAGR Calculator: Compound Annual Growth Rate
Use this CAGR calculator to estimate the compound annual growth rate, or annualized return, for a stock, ETF, index, or other investment over a selected time period.
Enter a ticker symbol, choose the start and end dates, and compare the hypothetical growth of a ,000 investment with and without dividend reinvestment where available.
How to use the CAGR calculator
- Enter a stock, ETF, index, or fund symbol.
- Choose an investment start date and end date.
- Optionally compare the result with another symbol or index.
- Click Chart $10K Invested to view hypothetical growth with and without dividend reinvestment where available.
What is CAGR?
CAGR stands for compound annual growth rate. It shows the annualized rate of return that would take an investment from its beginning value to its ending value over a selected period, assuming steady compounded growth.
CAGR formula
The basic CAGR formula is:
CAGR = (Ending Value / Beginning Value)^(1 / Number of Years) - 1
CAGR example
For example, if an investment grew from $10,000 to $16,000 over 5 years, the CAGR would be the annualized return that turns $10,000 into $16,000 across that 5-year period (9.86%).
CAGR is useful because it smooths a multi-year return into a single annualized figure, making it easier to compare different investments or time periods.
CAGR vs. annualized return
For many investing comparisons, CAGR and annualized return are used in similar ways. Both describe the average yearly growth rate over a period. CAGR is especially useful when comparing investments with different start and end dates.
CAGR Calculator FAQ
What does CAGR mean?
CAGR means compound annual growth rate. It is the annualized growth rate of an investment over a selected period.
Is CAGR the same as total return?
No. Total return measures the full gain or loss over the entire period, while CAGR converts that result into an annualized rate.
Can CAGR be used for stocks and ETFs?
Yes. CAGR can be used to compare stocks, ETFs, indexes, funds, or other investments over time, provided beginning and ending values are available.
Does dividend reinvestment affect CAGR?
Yes. Reinvested dividends can materially change long-term results. Where available, The Online Investor’s tool can show hypothetical growth with and without dividend reinvestment.
