CAGR Calculator

CAGR (Compound Annual Growth Rate) = (Final Value divided by Initial Value) raised to the power of (1 divided by n) minus 1, where n is the number of years. For example, an investment growing from $10,000 to $25,000 over 5 years has CAGR = (25000/10000)^(1/5) - 1 = 20.1% per year.

A CAGR of 10 to 15% is generally considered good for equity investments. The US S&P 500 has delivered approximately 10% CAGR historically. Real estate returns 8 to 12% CAGR in most markets. Savings accounts and bonds return 1 to 6% CAGR. Higher returns typically come with higher risk.