Rate of Return โ CAGR & Simple
Simple return = total % change. CAGR = compound annual growth rate for comparing different time periods.
Did our AI summary help? Let us know.
CAGR for comparison S&P ~10% historical Include dividends Account for fees
Ready to run the numbers?
Why: CAGR is best for comparing investments across periods.
How: Enter initial value, final value, years, and any additional investments.
Run the calculator when you are ready.
Rate of Return Calculator โ Measure Your Investment Performance
Calculate simple and annualized (CAGR) returns. Compare to market benchmarks.
Sample Scenarios โ Click to Load
Investment Details
Return Analysis
Investment
Performance
Get AI-Powered Analysis
Compare to market benchmarks.
1. Key Takeaways
- โข CAGR is best for comparing investments
- โข Past returns don't guarantee future
- โข Consider risk-adjusted returns
- โข Account for fees and taxes
- โข Simple return = total % change
- โข CAGR = compound annual growth
2. Did You Know?
Simple Return
Total percentage change
CAGR
Compound annual growth rate
S&P 500
~10% historical CAGR
Bonds
~4-5% historical CAGR
Formula
CAGR = (FV/PV)^(1/n) - 1
Compare Apples
Use CAGR for different periods
3. How It Works
Simple return = (final - initial) / initial ร 100. CAGR = (final/initial)^(1/years) - 1. CAGR smooths returns to an annual rate for comparison across different time periods.
Inputs
Initial value, final value, years, additional investments
Outputs
Simple return, CAGR, total gain, gain percent
4. Expert Tips
Use CAGR for comparison
Levels playing field across periods
Include all contributions
For accurate gain calculation
Account for fees
Net return matters
Tax-adjusted
After-tax return is real
5. Comparison Table
| $10Kโ$15K | 5 years | S&P ~10% |
|---|---|---|
| CAGR | ~8.4% | Benchmark |
6. FAQ
Simple = total change. CAGR = annualized for comparison.
Use total return (price + dividends).
CAGR works for losses too.
~10% historical, ~7% real.
Subtract from return for net.
7. Quick Stats
10%
S&P historical
4-5%
Bonds
7%
Real return
CAGR
Compare tool
8. Sources
9. Disclaimer
โ ๏ธ Warning: Estimates only. Past performance โ future. Not financial advice.
For educational purposes only โ not financial advice. Consult a qualified advisor before making decisions.
๐ก Money Facts
S&P 500 historical CAGR
โ Market data
CAGR = (FV/PV)^(1/n) - 1
โ Finance
Related Calculators
Taxes and Inflation Impact on Returns Calculator
Calculate how taxes and inflation affect your investment returns. Analyze nominal returns, after-tax returns, real returns (inflation-adjusted), and...
SavingsEffective Annual Yield Calculator
Calculate Effective Annual Yield (EAY/APY), compare compounding frequencies, convert APR to APY, analyze earnings impact, and perform break-even analysis....
SavingsDouble My Savings Calculator
Calculate how long it takes to double, triple, or multiply your savings using the Rule of 72 and compound interest. Analyze different interest rates, compare...
SavingsMillionaire Calculator
Calculate how long it will take to become a millionaire based on your savings rate and investment returns.
SavingsRecurring Savings Growth Calculator
Calculate the future value of your recurring savings deposits with compound interest. Analyze deposit timing impact (beginning vs end of period), compare...
SavingsSave Now vs Save Later Calculator
Calculate how much delaying savings costs you. Compare final values, cost of waiting, and catch-up requirements. Plan your savings.
Savings