Compound Annual Growth Rate (CAGR) is the annualized return of an investment, assuming it grew at a constant rate each year. It's the best way to compare investments held for different time periods.

The S&P 500 has averaged ~10% annual return historically. For individual investments, 7-15% annually is generally considered strong. Real estate typically returns 8-12% including appreciation and rent.

How is ROI different from CAGR?

ROI (Return on Investment) is the total percentage gain over the entire period. CAGR expresses the same return as a per-year rate. For example, $10,000 growing to $15,000 in 5 years is 50% ROI but only 8.45% CAGR. Always use CAGR when comparing investments held for different lengths of time.

What is a realistic long-term investment return?

The US stock market (S&P 500) has returned roughly 10% per year nominally, or about 7% after inflation, since the 1920s. But returns vary wildly year to year: −38% in 2008, +32% in 2013. The long-run average is only achieved by staying invested through downturns. A diversified global portfolio typically targets 6–8% real returns over a 20+ year horizon.

What is dollar-cost averaging?

Dollar-cost averaging (DCA) means investing a fixed amount on a regular schedule — say $200 every month — regardless of market conditions. When prices fall, you buy more shares; when they rise, fewer. Over time this averages your cost per share and removes the stress of trying to time the market. It's the default strategy for most long-term investors.

Calculadora de Retorno de Inversión

Calcula tu retorno, ganancia y tasa de crecimiento anualizada.

Inversión Inicial

Valor Final

Período de Inversión

años

Rendimiento Total (ROI)

50.00%

Ganancia / Pérdida$5,000.00

Rendimiento Anualizado (CAGR)8.45%

Saldo Final$15,000.00

Initial Investment

Growth

$10,000.00 grew to $15,000.00 in 5 years — a 50.00% total return, or 8.45% per year (CAGR).

A 1% annual fee compounds against you — over 30 years it can consume 25% of your ending balance.

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Acerca de esta Calculadora

Ya sea evaluando acciones, bienes raíces o un negocio, esta calculadora te ayuda a entender tu retorno real, tanto total como anualizado para una comparación justa.

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Preguntas Frecuentes

¿Qué es la CAGR?

La Tasa de Crecimiento Anual Compuesto (CAGR) es el retorno anualizado de una inversión asumiendo crecimiento constante. Es la mejor forma de comparar inversiones con diferentes plazos.

¿Qué es un buen ROI?

El S&P 500 ha promediado ~10% anual históricamente. Para inversiones individuales, un 7-15% anual generalmente se considera sólido.

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For informational purposes only. Calculator results are estimates based on the inputs you provide. This is not financial, investment, tax, or legal advice. Consult a qualified financial professional before making major financial decisions.