What is a good CAGR for investments?

A good Compound Annual Growth Rate (CAGR) depends on the asset class. Historically, a diversified stock market index like the S&P 500 has returned around 7% to 10% annually after inflation.

CAGR Calculator [2026]

Measure the consistent growth rate of your investments

Data: Standard Financial Formula (2026)

Initial Investment

Add Contributions

Annual Return (%)

Time Period

Years

Projected Value

$20,096.61

Authoritative Resources

Investopedia: How to Calculate CAGR

FCAC: The Power of Compound Interest

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What is CAGR?

The Compound Annual Growth Rate (CAGR) is one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value over time.

Unlike a simple average return, CAGR smoothes out the volatility of investment returns. It represents the rate at which an investment would have grown if it had grown the same rate every single year and the profits were reinvested at the end of each year.