Calculator Inputs
Example data table
| Beginning value | Ending value | Duration | CAGR | Inflation | Fee drag |
|---|---|---|---|---|---|
| $10,000.00 | $13,310.00 | 3 years | 10.00% | 3.00% | 0.50% |
| $15,000.00 | $18,895.00 | 3 years | 8.00% | 2.50% | 0.25% |
| $25,000.00 | $40,000.00 | 5 years | 9.86% | 3.20% | 0.75% |
Formula used
CAGR = ((Ending Value ÷ Beginning Value)1 ÷ n − 1) × 100
Fee-adjusted CAGR = (((1 + CAGR) ÷ (1 + Fee Rate)) − 1) × 100
Real CAGR = (((1 + Fee-adjusted CAGR) ÷ (1 + Inflation Rate)) − 1) × 100
Monthly Growth Rate = ((Ending Value ÷ Beginning Value)1 ÷ (12n) − 1) × 100
Years to Target = ln(Target Value ÷ Ending Value) ÷ ln(1 + CAGR)
Here, n is the investment duration in years. This page uses your date range when both dates are present. Otherwise, it uses manual years plus months converted into a year fraction.
How to use this calculator
- Enter the beginning and ending investment values.
- Add years and extra months, or provide start and end dates.
- Optionally enter inflation, annual fee drag, benchmark CAGR, and a target value.
- Press Calculate CAGR to show the result above the form.
- Review the summary metrics and projection path for context.
- Use the CSV or PDF buttons to export the analysis.
FAQs
1. What does CAGR measure?
CAGR shows the constant yearly rate needed to move from the starting value to the ending value over a chosen period. It smooths uneven yearly performance into one comparable annualized figure.
2. Why is CAGR useful for comparing investments?
It standardizes growth into one annual rate, which makes different holding periods easier to compare. That helps when judging portfolios, funds, strategies, or backtests with different start and end dates.
3. Does CAGR show volatility?
No. CAGR hides the path between the start and end values. Two investments can share the same CAGR while having very different drawdowns, recoveries, and year-to-year volatility.
4. Why include inflation in the calculation?
Inflation converts nominal growth into real growth. A portfolio may look strong in headline terms, but its purchasing-power gain can be much smaller after adjusting for rising prices.
5. Why include annual fee drag?
Fees reduce the yearly growth factor. Adding fee drag helps you test a cleaner net-return scenario, especially when comparing managed products, advisory accounts, or recurring platform costs.
6. Should I use dates or manual duration?
Use dates when you know exact start and end points. Use manual years and months for scenario planning, forecasting, or quick comparisons where exact calendar dates are unnecessary.
7. What happens when the target value is already reached?
The calculator reports that the current ending value already meets the target. In that case, an extra time-to-target estimate is not required, so no future years are calculated.
8. When should CAGR not be used alone?
Do not rely on CAGR alone when cash flows, dividends, major deposits, withdrawals, or volatility matter. Pair it with money-weighted returns, drawdown metrics, and risk measures for fuller analysis.