What are total return and CAGR?

Total return measures the change between starting and ending values as a percentage of the starting value. CAGR is the constant annual rate that compounds the initial value to the ending value over the entered period. Neither metric describes the path between values.

The calculator uses total return = (ending value − initial value) ÷ initial value × 100. CAGR = ((ending value ÷ initial value) raised to (1 ÷ years) − 1) × 100. For example, a hypothetical rise from 1,000 to 1,210 over two years is a 21% total return and 10% CAGR. This is arithmetic, not a historical result or forecast.

CAGR can compare single starting and ending values across different periods. It smooths the result into one annual rate and hides volatility, interim losses, and the order of gains and losses. A positive CAGR does not mean the value increased every year.

This model is unsuitable when money is added or withdrawn during the period. It also omits fees, taxes, inflation, uncounted distributions, and currency conversion. For recurring contributions, use the compound growth calculator.

Enter a positive initial value, a non-negative ending value, and a positive duration in years. Fractional years are allowed. If the ending value is zero, the model reports a total loss of 100% and CAGR of −100%. Negative values are not accepted. Large or unusually short-period inputs may exceed the calculator's numeric range.

This is a calculation from entered values, not a forecast or recommendation. Before comparing results, check that the values use the same assets, currency, valuation method, and dates.

Source and date: FINRA discusses compounded annualization for multi-year returns. See FINRA, Key Concepts: Return and Rate of Return, accessed 2026-11-03. This calculator applies the formula to entered values.

Frequently asked questions

How is CAGR different from total return?

Total return is the percentage change across the full period. CAGR expresses the equivalent constant compounded rate per year for that period.

Does CAGR mean the investment grew steadily?

No. It compresses the beginning and ending values into an annualized rate and does not describe intermediate changes.

Can I include additional deposits?

This calculator has no fields for interim deposits or withdrawals. Use a cash-flow-aware method for a period with contributions or withdrawals.

What happens if the ending value is zero?

The calculator shows a −100% total return and −100% CAGR. It does not accept negative ending values.