Investment Growth Rate Calculator
Work out how fast an investment grew each year on average — the smoothed annual rate (known as CAGR). Works for stocks and shares, property, managed funds or any investment.
What CAGR measures and why it is fair
The compound annual growth rate (CAGR) is the single, smoothed yearly rate that would take a starting value to an ending value over a period, as if it grew steadily every year. It is the fairest way to compare things that changed over different time frames — two investments, a company’s revenue, a property’s value, or any before-and-after figure.
Unlike a simple average, CAGR accounts for compounding, so it reflects how growth builds on itself. Its limitation is that it smooths away the bumps: two investments with the same CAGR can have wildly different year-to-year journeys, and CAGR says nothing about the risk taken to get there.
The formula
CAGR = (Ending value ÷ Beginning value) raised to the power of (1 ÷ number of years), minus 1 — expressed as a percentage.
Worked example
| Item | Value |
|---|---|
| Beginning value | $10,000 |
| Ending value | $16,000 |
| Number of years | 5 |
| Total growth | 60% |
| CAGR | ~9.86% a year |
When to use it
- Comparing the growth of two investments held for different lengths of time.
- Measuring a business’s revenue or user growth on a like-for-like annual basis.
- Tracking property or portfolio growth over the years.
- Turning a ‘total return’ into an annual rate you can compare to a savings rate.
Assumptions & what’s not included
- CAGR smooths volatility — it does not show the bumpy path in between.
- It measures only the start and end values, so it ignores money added or withdrawn along the way.
- It excludes dividends, fees and tax unless you build them into the figures.
- A longer, steadier history gives a more meaningful CAGR than a short, lucky run.
Frequently asked questions
What is CAGR (compound annual growth rate)?
CAGR is the constant yearly rate that would take an investment from its starting value to its ending value over a period, as if it grew smoothly each year. It is calculated as (ending value divided by beginning value) to the power of one over the number of years, minus one. It accounts for compounding, unlike a simple average.
Can I use this for stocks and shares?
Yes. Enter what your stock or share holding was worth at the start, what it is worth now, and how many years you held it. The calculator shows your average annual growth rate. It also works for property, managed funds, or any investment with a start value, end value and time period.
How is CAGR different from total return?
Total return is the overall percentage gain across the whole period, while CAGR is the smoothed per-year rate. For example, an investment that doubled over 5 years has a 100% total return but a CAGR of about 14.9% per year. CAGR lets you fairly compare investments held for different lengths of time.
Does CAGR include dividends or fees?
CAGR is based purely on the start and end values you enter. If your ending value already includes reinvested dividends, they are captured. It does not separately account for fees, tax, or money you added along the way, so treat it as a simplified growth measure.
Is my data private?
Yes, completely. All calculations run in your browser. Nothing is sent to a server, stored, or shared, and there is no sign-up.