Enter a starting value, ending value, and time period to calculate the Compound Annual Growth Rate — the annualized return for a single lump-sum investment.
Amount invested initially
Current or final value
When you invested
Today or exit date
CAGR (Compound Annual Growth Rate) is the annualized rate at which a single investment grows from a starting value to an ending value over a fixed time period. It smooths out year-to-year volatility into a single representative annual rate.
Formula: CAGR = (End Value / Start Value)^(1 / Years) − 1
| CAGR | XIRR | |
|---|---|---|
| Cash flows | One lump sum | Multiple, any dates |
| Handles DCA / SIP | No | Yes |
| Timing sensitivity | Start + end only | Every contribution |
| Best for | Single investment | Real portfolios |
| Excel equivalent | =CAGR formula | =XIRR() |
Use CAGR for quick single-investment calculations. Use XIRR whenever money moved at multiple points — which is true of almost every real brokerage account.
You invest $10,000 in January 2020. By January 2025 it is worth $19,500.
CAGR = (19500 / 10000)^(1/5) − 1 ≈ +14.3% / yr
If instead you had invested $5,000 in January 2020 and another $5,000 in January 2023, the CAGR formula would still show +14.3% — but XIRR would give a very different answer because the second $5,000 had only 2 years to grow instead of 5.
The S&P 500 has historically returned ~10%/yr. A CAGR above that over a long period is considered strong for a diversified portfolio. For individual stocks, 15–20%+ is exceptional but harder to sustain.
Yes — if the end value is less than the start value, CAGR is negative. It represents the annualized rate of loss.
Brokers often show time-weighted return (TWR) or total return including dividends. CAGR here is purely price-based for a single lump-sum investment. If you made multiple deposits, use XIRR instead — it accounts for when each dollar was deployed.