Calculator Inputs
$
Initial investment amount or portfolio value at the start of the period.
$
Final value at the end of the period. Enter the current or target value.
yrs
Length of the investment period in years. Decimals are supported (e.g. 2.5).
Results
CAGR
13.35%
Compound Annual Growth Rate
Total Return
250.00%
Total Gain / Loss
$25,000
$10,000 Would Grow To
$35,000
Doubling Time (Rule of 72)
5.4 yrs
At 13.35% CAGR
Starting Value
$10,000
Investment Growth Over Time (at 13.35% CAGR)
Growth Scenarios — Same Starting Value, Different CAGR
How $10,000 grows over 10 years at different annual return rates.
| Annual Return (CAGR) | Value After 10 Yrs | Total Gain | Multiple |
|---|---|---|---|
| 3.00% | $13,439 | $3,439 | 1.34× |
| 5.00% | $16,289 | $6,289 | 1.63× |
| 7.00% | $19,672 | $9,672 | 1.97× |
| 10.00% | $25,937 | $15,937 | 2.59× |
| 12.00% | $31,058 | $21,058 | 3.11× |
| 15.00% | $40,456 | $30,456 | 4.05× |
| 20.00% | $61,917 | $51,917 | 6.19× |
Year-by-Year Growth
| Year | Value | Gain from Start | Return from Start |
|---|---|---|---|
| Start | $10,000 | $0.00 | 0.00% |
| 1 | $11,335 | $1,335 | 13.35% |
| 2 | $12,847 | $2,847 | 28.47% |
| 3 | $14,562 | $4,562 | 45.62% |
| 4 | $16,505 | $6,505 | 65.05% |
| 5 | $18,708 | $8,708 | 87.08% |
| 6 | $21,205 | $11,205 | 112.05% |
| 7 | $24,035 | $14,035 | 140.35% |
| 8 | $27,243 | $17,243 | 172.43% |
| 9 | $30,879 | $20,879 | 208.79% |
| 10 | $35,000 | $25,000 | 250.00% |
What is CAGR?
CAGR is the rate at which an investment grows from its starting value to its ending value, assuming profits were reinvested each year. It "smooths out" year-to-year volatility to give you a single meaningful annual rate. Formula: CAGR = (End / Start)^(1/Years) − 1.
CAGR vs Average Return
CAGR (geometric mean) is always ≤ the arithmetic average return. If a stock rises 100% then falls 50%, the average is 25%/yr but the CAGR is 0% — you're back where you started. CAGR reflects actual compounded wealth growth, making it the correct metric for measuring investment performance.
The Rule of 72
Divide 72 by the CAGR to estimate how many years it takes for an investment to double. At 7% CAGR: 72 ÷ 7 ≈ 10.3 years. At 12% CAGR: 72 ÷ 12 = 6 years. This is a quick mental math shortcut, accurate within 1–2 years for rates between 4% and 20%.
Benchmarks
S&P 500 long-run CAGR is ~10–11% (nominal), ~7–8% inflation-adjusted. Warren Buffett's Berkshire Hathaway has compounded at ~20% CAGR over 58 years — considered extraordinary. Most actively managed funds underperform 10% CAGR over 20-year periods.