How it works

Total return is the simple percentage change: (end − start) ÷ start. It tells you how much you made overall but ignores how long it took.

CAGR — the compound annual growth rate — smooths that gain into a single yearly rate: CAGR = (end ÷ start)1/years − 1. It's the fairest way to compare investments held for different lengths of time.

Worked example

$10,000 growing to $16,500 over 5 years is a 65% total return — but a CAGR of about 10.5% a year, which is the number you'd compare against other investments.

Frequently asked questions

Why is CAGR lower than total return?
Because CAGR is per year and total return is cumulative. Compounding means a modest annual rate stacks up to a large total over several years.

Does it account for deposits along the way?
No — it compares a single start value with a single end value. For regular contributions, use the compound interest calculator.

Can it show a loss?
Yes. If the end value is lower, both figures turn negative and the total return is shown in red.