CAGR Calculator
4 modes: find CAGR, end value, years, or starting value. Benchmarked against S&P 500, TSX, and Canadian housing.
Inputs
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How does your CAGR compare?
Your rate vs Canadian and global benchmarks · hover bars for source details
The math behind your result
Every number on this page is derived from the exact Canadian regulatory formula — not approximations or estimates. The calculation runs entirely in your browser using the inputs you provided. Expand the section below to verify the math step-by-step, or share the URL to reproduce these exact results.
▶ How is CAGR calculated?
Mode A — Find CAGR
CAGR = (End Value / Start Value)^(1 / Years) − 1
Example: $10,000 → $20,000 in 10 years
CAGR = (20,000 / 10,000)^(1/10) − 1
= 2^0.1 − 1
= 1.07177 − 1
= 7.177% Mode B — Find End Value
End Value = Start Value × (1 + CAGR)^Years
Example: $10,000 at 7% for 10 years
End Value = 10,000 × (1.07)^10
= 10,000 × 1.9672
= $19,672 Mode C — Find Years
Years = log(End / Start) / log(1 + CAGR)
Example: $10,000 → $20,000 at 7% CAGR
Years = log(2) / log(1.07)
= 0.6931 / 0.0677
= 10.24 years Mode D — Find Start Value
Start Value = End Value / (1 + CAGR)^Years
Example: End $20,000 at 7% for 10 years
Start = 20,000 / (1.07)^10
= 20,000 / 1.9672
= $10,167 Rule of 72
Doubling years ≈ 72 / (CAGR × 100) Example: at 7.2% CAGR → 72 / 7.2 = 10 years to double Accuracy: within 5% for rates between 3% and 15% Exact formula: ln(2) / ln(1 + CAGR)
About the CAGR Calculator
What is CAGR?
CAGR — Compound Annual Growth Rate — is the annualized rate of return that describes the constant rate at which an investment would have grown from its starting value to its ending value over a given period. It's a "smoothed" return that ignores year-to-year volatility. A portfolio that grew from $10,000 to $20,000 over 10 years has a CAGR of 7.18%, regardless of whether year 1 was +40% and year 2 was −20%.
Why CAGR matters for Canadians
CAGR is the standard lens for comparing investment performance across different time periods and asset classes. When comparing the TSX Composite to the S&P 500 to Canadian housing, CAGR lets you normalize any holding period into a single apples-to-apples annualized number. It's the number quoted in every fund fact sheet, ETF marketing document, and CIRO-regulated performance disclosure.
Important caveats: (1) CAGR assumes perfect compounding and ignores fees, taxes, and currency conversion. (2) A CAGR based on one starting and one ending point can be distorted by lucky/unlucky entry and exit dates — the S&P 500 3-year CAGR from Jan 2020 to Jan 2023 looked terrible because of the 2022 drawdown, but the 5-year or 10-year CAGR tells a completely different story. Always consider the time horizon.
Why CAGR is different from average annual return
If a fund returns +50% in year 1 and −33% in year 2, the arithmetic average return is (+50 − 33) / 2 = 8.5%. But you actually ended up with exactly the same dollar amount you started with ($1 × 1.5 × 0.67 = $1.00). The CAGR is 0%. Arithmetic averages overstate performance when there's volatility. CAGR is the honest number.
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- Retirement Projection — CPP + OAS, RRSP withdrawal phasing, runway to 95.
- TFSA vs RRSP — At your marginal rate, which account wins over 30 years?
Not financial advice. CAGR is a mathematical tool. Benchmark figures are historical averages — past performance does not guarantee future results. All calculations happen in your browser — no data is sent to any server.
Frequently asked questions
What is CAGR and what formula does this calculator use?
CAGR (Compound Annual Growth Rate) is the annualized rate of return that describes the constant rate at which an investment would have grown from its starting value to its ending value over a given period — a "smoothed" return that ignores year-to-year volatility. The formula is CAGR = (End Value / Start Value)^(1 / Years) − 1. For example, $10,000 growing to $20,000 over 10 years gives a CAGR of (20,000/10,000)^(1/10) − 1 = 7.18%, regardless of how bumpy the ride was in individual years.
Why is CAGR different from average annual return?
If a fund returns +50% in year 1 and −33% in year 2, the arithmetic average return is (+50 − 33) / 2 = 8.5%. But you actually ended up with exactly the same dollar amount you started with ($1 × 1.5 × 0.67 = $1.00) — the CAGR is 0%. Arithmetic averages overstate performance whenever there is volatility between periods; CAGR reflects what you actually earned.
What do the 4 modes on this calculator do?
Find CAGR solves for the growth rate given a starting value, ending value, and number of years — the most common use case. Find End Value projects what a starting amount grows to at a chosen CAGR over time (End Value = Start Value × (1 + CAGR)^Years). Find Years tells you how long it takes to go from a starting value to a target ending value at a given CAGR. Find Start Value works backward from a target ending value and rate to tell you what you would need to start with.
How does my CAGR compare to the stock market or Canadian housing?
This calculator plots your CAGR against six benchmarks: the S&P 500 (1928–2024, NYU Stern/Damodaran), the TSX Composite (50-year), Canadian housing (CREA historical), Canadian bonds (FTSE Russell), a savings account/HISA rate, and average inflation (StatCan CPI). These are historical averages, not guarantees — past performance does not predict future results, and a CAGR calculated from just one start and one end date can be skewed by lucky or unlucky entry/exit timing.
What is the Rule of 72 and how does it relate to CAGR?
The Rule of 72 is a quick mental-math shortcut: divide 72 by your CAGR (as a percentage) to estimate how many years it takes to double your money. At a 7.2% CAGR, for example, 72 / 7.2 = 10 years to double. It is accurate within about 5% for rates between 3% and 15%; the exact formula is ln(2) / ln(1 + CAGR).