Investment Return Calculator
Calculate the annualized return (CAGR) of an investment based on starting and ending values.
Calculator
CAGR (annualized return)
12.14%
Total return
150.00%
Profit
$15,000
What is investment return?
The compound annual growth rate (CAGR) measures the annual rate of return that an investment would need to grow from its starting value to its ending value over a given time period.
Example
An investment that grows from $10,000 to $25,000 over 8 years has a CAGR of about 12.14%.
Money-saving tips
- •Compare CAGR across investments to evaluate performance fairly.
- •CAGR smooths out volatility — it does not show the ups and downs along the way.
- •Use after-fee returns for an accurate comparison.
Common mistakes
- •Confusing average annual return with compound annual growth rate.
Financial definitions
- CAGR
- Compound Annual Growth Rate — the smoothed annual return over a period.
Frequently asked questions
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Estimated reading time: 4 min