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Investing

Investment return calculator

Enter what you started with, what it is worth now and how long you held it to find your annualized return.

$
= $10,000
$
= $18,000
CAGR (annualized return)12.47%
Total gain$8,000
Simple ROI80%
Value after 10 more years at same CAGR$58,320
Assumptions

The last 10 years of the chart are a projection assuming the same CAGR continues. Past performance does not guarantee future results. Fees and taxes are not modeled.

Growth at 12.47% a year

    CAGR vs simple ROI

    Simple ROI tells you the total percentage gain: (end − start) ÷ start. It ignores time, so 80% over 5 years and 80% over 20 years look identical. CAGR, the compound annual growth rate, smooths the journey into a single yearly rate: (end ÷ start)^(1/years) − 1.

    Using the result

    CAGR lets you compare investments held for different lengths of time, and check whether a return beat inflation or a benchmark index. It is a smoothed figure. Real returns rise and fall each year, so it says nothing about volatility.

    Next steps

    Frequently asked questions

    Does CAGR include dividends?

    Only if you include reinvested dividends in the ending value. For a total-return figure, add dividends received to the ending value.

    What if I added money during the period?

    CAGR assumes a single lump sum. With ongoing contributions, the result overstates performance; a money-weighted return (IRR) is more accurate.

    What is a good CAGR?

    Broad US stock indexes have historically returned roughly 10% a year nominal (about 7% after inflation), though never guaranteed. See the compound interest guide. Compare against a relevant benchmark.

    This calculator is for education and illustration. It does not account for taxes, fees or your personal situation unless stated, and is not financial advice.

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