Long-term planning

Average Return Calculator

Calculate the compound annual growth rate (CAGR) from an initial to final investment value over a time period. Use this Savings and investing tool to enter your numbers, review the result, and understand the key assumptions before making the next decision.

What you get
A focused calculator, clear explanation, common questions, and useful next tools.
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Result
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How this calculator works
The result depends on the numbers you enter and the assumptions shown below.

CAGR represents the rate at which an investment would have grown if it grew at a steady annual rate. Formula: CAGR = (FV/PV)^(1/n) - 1.

Review the inputs carefully and treat the output as an estimate. For decisions involving money, taxes, health, law, or security, compare the result with trusted professional guidance when needed.

Frequently asked questions

How is CAGR different from average return?

CAGR accounts for compounding and provides a single smoothed rate, while arithmetic average return does not account for compounding effects.