Calculate the compound annual growth rate (CAGR) of any investment.
CAGR (Compound Annual Growth Rate) shows the smooth annual rate that gets you from the beginning value to the ending value. It's different from arithmetic average return because it accounts for compounding.
An investment that grows $10,000 to $18,000 over 5 years has a CAGR of 12.47%. This means the investment grew as if it earned exactly 12.47% every year, even though actual yearly returns likely varied.
| Asset | Historical CAGR |
|---|---|
| S&P 500 (1957-2024) | ~10.5% |
| US Real Estate | ~3.8% |
| US Bonds (Agg) | ~5.3% |
| Gold | ~7.5% |
| Inflation (CPI) | ~3.3% |