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Annualized Rate of Return Calculator
Find the compound annual growth rate (CAGR) of an investment over time.
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What is annualized rate of return?
The annualized rate of return, often called CAGR (Compound Annual Growth Rate), expresses an investment’s growth as a smoothed, constant yearly rate — even if the actual year-to-year returns varied.
How this calculator works
Enter the investment’s beginning value, ending value, and the number of years between them. The calculator uses the standard CAGR formula: (Ending Value / Beginning Value) raised to the power of (1 / Years), minus 1, expressed as a percentage.
CAGR smooths out volatility and doesn’t reflect the actual path or risk taken to get there. This tool is for general investment education and planning purposes only, not financial advice, and past returns don’t guarantee future results.
Last reviewed August 2026