Stock CAGR Calculator

Calculate the Compound Annual Growth Rate of any stock or investment. Enter the beginning value, ending value, and number of years to find your CAGR.

Beginning Value

Ending Value

Number of Years

Results

Enter values and click Calculate to see results

How the CAGR Calculator Works

Enter Beginning Value

Input the initial investment amount or stock price.

Add Ending Value

Enter the final value after the investment period.

Specify Time Period

Enter the number of years to calculate annualized return.

Why CAGR Matters

Smooths Volatility

CAGR provides a consistent annual rate, ignoring year-to-year fluctuations.

Compare Investments

Easily compare returns across different assets and time periods.

Better Than Average

Unlike arithmetic average, CAGR accounts for compounding effects.

Industry Standard

CAGR is the standard metric used by financial professionals worldwide.

Frequently Asked Questions

What is a good CAGR for stocks?

The S&P 500 has historically returned about 10% CAGR over long periods. 12-15%+ is considered excellent for individual stocks, while 7-10% is solid for diversified portfolios.

What are CAGR limitations?

CAGR ignores volatility and risk. It assumes steady growth, which rarely happens. Two investments with same CAGR can have very different risk profiles.

How is CAGR different from average return?

Average return is arithmetic mean of yearly returns. CAGR is the geometric mean that accounts for compounding. CAGR is always lower or equal to arithmetic average.

Can CAGR be negative?

Yes, if the ending value is less than the beginning value, CAGR will be negative, indicating a loss over the investment period.

What time period should I use for CAGR?

Longer periods (5+ years) provide more meaningful CAGR figures. Short-term CAGR can be misleading due to market volatility.

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