Project how an investment grows with regular contributions, or measure the actual return on an investment you already own, including its compound annual growth rate (CAGR).
Two ways to use this calculator
- Project growth: estimate what an investment could be worth in the future with regular contributions and an assumed average return.
- Measure a return: enter what you invested and what it is worth now to find the compound annual growth rate (CAGR).
What is CAGR?
CAGR is the steady yearly rate that would turn your starting value into your ending value over the period. It smooths out the ups and downs, which makes it the fairest way to compare investments held for different lengths of time.
CAGR = (Ending value ÷ starting value)1 ÷ years − 1
Worked examples
Projection: $10,000 invested with $200 added each month at an 8% average return grows to about $58,786 in 10 years. You put in $34,000, so growth adds about $24,786.
Measuring a return: an investment that grew from $10,000 to $18,000 in 6 years has a total return of 80%, but a CAGR of about 10.29% a year. A simple average (80% ÷ 6 = 13.3%) overstates it because it ignores compounding.
Things that reduce real returns
- Fees: fund expense ratios and advisory fees come straight out of your return.
- Taxes: on dividends and gains, unless you invest in tax-advantaged accounts.
- Inflation: a 7% return with 3% inflation is about a 4% real gain. See the inflation calculator.
Frequently asked questions
Does CAGR include contributions?
No. CAGR is meant for a single lump sum. If you added money along the way, the result will overstate your return.
What return should I expect?
It depends on the investment and is never guaranteed. Diversified stock portfolios have historically averaged higher returns than bonds or cash over long periods, with larger swings.
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Results are estimates for planning and education only. They are not financial, tax, legal or medical advice. Check important numbers with a qualified professional.