Investment Return Calculator (CAGR)
What did an investment really earn per year? This calculator converts a starting balance, ending balance, and number of years into a total return and an annualized compound growth rate (CAGR).
How to use this calculator
- Enter starting value.
- Enter ending value.
- Enter number of years held.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
Total return is (ending value − starting value) ÷ starting value. The annualized return is the constant rate r that satisfies start × (1 + r) ^ years = end — the compound annual growth rate. Because it averages across good and bad years, CAGR is the fair way to compare investments of different lengths.
Frequently asked questions
What is a good long-term stock return?
The S&P 500 has historically compounded at roughly 10% per year before inflation, or about 7% after 3% inflation. Bonds have returned far less, while a diversified portfolio of stocks and bonds sits between the two.
Why is CAGR lower than my average yearly return?
Because losses compound. After a 50% drop you need a 100% gain to break even — averaging the yearly percentages ignores that asymmetry. CAGR is the number that actually reflects your ending balance.
Does this account for dividends?
Only if you include them in the ending value. For a total return including reinvested dividends, use the ending value of the account with dividends reinvested; otherwise you are measuring price change alone.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.