CAGR Calculator (2026)

CAGR (Compound Annual Growth Rate) is the constant annual rate at which an investment would have grown to reach its final value from its starting value, assuming profits are reinvested each year. It is calculated as (ending value ÷ starting value) ^ (1 ÷ years) − 1. CAGR smooths out the ups and downs of real returns into a single annualised figure, which makes it the standard way to compare investments held for different lengths of time.

A simple average adds each year's return and divides by the number of years; it ignores compounding and overstates performance when returns are volatile. CAGR is a geometric mean that accounts for compounding, so it reflects the actual rate that turned your starting value into your ending value. For example, +50% then −50% averages to 0% but the CAGR is negative (you end with 75% of your money).

No. CAGR measures the growth of a single starting amount into a single ending amount. If you made regular top-ups along the way, CAGR will overstate the true return on your contributions. For a plan with monthly contributions, use a future-value or money-weighted return (IRR/XIRR) calculation instead.

It depends on the asset and risk. As reference points: CPF Ordinary Account guarantees 2.5% and Special Account 4%; the Straits Times Index has historically delivered roughly 4–7% including dividends over long periods; global equity indices have averaged around 7–10% over multi-decade horizons before inflation. A higher CAGR usually comes with higher volatility and risk of loss.

Yes. If your ending value is lower than your starting value, the CAGR is negative, showing the annualised rate of loss. This calculator displays negative growth in red so a losing investment is immediately clear.