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CAGR Calculator

What growth rate actually got you from A to B? Four modes: find CAGR, project future value, reverse-calculate start value, or see time to goal.

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CAGR smooths out year-to-year volatility to show a steady growth rate equivalent. It does not mean growth is actually constant each year.
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Enter values to calculate CAGR

Exemples pratiques

Dubai property investment

Bought for AED 750,000 in 2018, sold for AED 1,150,000 in 2026 (8 years). CAGR = (1,150,000 / 750,000)^(1/8) − 1 = 5.5% per year. Solid return, comparable to long-term UAE real estate benchmarks.

Stock portfolio review

Portfolio grew from USD 50,000 to USD 112,000 over 9 years. CAGR = (112,000 / 50,000)^(1/9) − 1 = 9.3% per year. Slightly below S&P 500 historical average — worth reviewing asset allocation.

Education fund goal

Need AED 250,000 in 15 years for university fees. Have AED 80,000 today. CAGR needed = (250,000 / 80,000)^(1/15) − 1 = 7.9% per year. Use the "Find CAGR" mode with these numbers to confirm.

Questions fréquentes

What is CAGR?▾
CAGR (Compound Annual Growth Rate) is the rate at which an investment would have grown if it grew at a steady rate each year. It is the "smoothed" annual growth rate that gets you from a starting value to an ending value over a given number of years. Formula: CAGR = (End/Start)^(1/Years) − 1.
How is CAGR different from average annual return?▾
CAGR accounts for compounding — growth on top of growth. Average return simply averages annual percentage changes. CAGR is more accurate for measuring investment performance because it reflects the actual compounding effect of returns.
What is a good CAGR for investments?▾
The S&P 500 has returned approximately 10–11% CAGR historically (before inflation). UAE real estate has averaged 5–8% CAGR. Inflation (AED) has been 2–4% CAGR. A CAGR consistently above 15% is exceptional and should be scrutinised carefully.
Can CAGR be negative?▾
Yes. If an investment lost value over time, the CAGR will be negative. For example, AED 10,000 declining to AED 7,000 over 5 years gives a CAGR of −6.7% per year.
What does CAGR not tell you?▾
CAGR hides volatility. Two investments with the same CAGR can have very different risk profiles — one might have had consistent gains, while the other had wild swings. Always review the year-by-year returns alongside CAGR.
How do I use CAGR to compare investments?▾
Calculate CAGR for each investment over the same time period. A UAE equity fund at 9.2% CAGR vs a savings account at 3.5% CAGR over 10 years produces dramatically different outcomes. On AED 100,000: fund → AED 240,804; savings → AED 141,060.

Outils similaires

Compound Interest

Rule of 72

Savings Goal

Inflation Calculator

CAGR is a mathematical tool for measuring past growth rates. It does not predict future returns. Past performance is not indicative of future results.