CAGR & Real Return Calculator

Turn a beginning-and-ending value into a single annualized rate, then see what that rate is really worth after inflation.

This annualizes a historical or hypothetical result — it does not predict future returns, which vary and are never guaranteed.

Beginning value

Ending value

Years

Assumed annual inflation

Project this rate forward, years

CAGR (annualized return)

9.15%

Exact real return (Fisher)

5.97%

Approx. real return (subtract)

6.15%

Nominal value in 20y

$138,240

Real (purchasing-power) value

$76,540

How it works: CAGR = (ending ÷ beginning)^(1/years) − 1 — the single constant rate that explains the whole move. Real return uses the exact Fisher equation, (1+nominal)/(1+inflation) − 1, shown next to the common shortcut of just subtracting inflation, so you can see how much the shortcut diverges at higher rates.

Limitations: CAGR smooths out all the volatility along the way — two very different paths can produce the same CAGR. See the DCA vs. Lump Sum calculator for why the path matters.

Sources & further reading

MoneyChimp CAGR / Annualized Returns of the S&P 500