Budget Beavers 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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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.