Compound Annual Growth Rate is the smoothed yearly return that would take your starting value to your ending value over the hold period. It answers how fast an investment grew on average per year even when the path was uneven — useful for comparing multi-year holdings on one scale.

Total return vs CAGR?

Total return is the overall percentage gain or loss from start to finish. CAGR annualizes that growth so multi-year holdings are comparable to other investments and benchmarks. A high one-year return and a modest CAGR can describe the same volatile path differently.

Should I include dividends?

Yes — add reinvested dividends in the dividends field or fold them into final value for a total-return picture. Ignoring cash dividends understates performance of income-focused stocks and funds. This tool does not model ongoing contributions unless you adjust start and end values.

Real vs nominal return?

Enter an inflation rate to see a purchasing-power (real) annualized return alongside nominal CAGR. Nominal return ignores inflation; real return shows whether wealth grew faster than prices rose over the same period. Past performance is not a guarantee of future results.

Optional capital gains tax rate estimates after-tax gain on positive profits for rough planning only. Tax treatment varies by account type, holding period, and jurisdiction. Consult a tax professional before relying on after-tax figures for major investment or withdrawal decisions.