Wealth Analytics • CAGR & Return Modeling

Investment Return Calculator

Averages lie — CAGR does not. This free investment return calculator computes your true annualized return (CAGR), total return, and profit from any start value, end value, and holding period.

📈 Investment Return (CAGR) Calculator

Total profit—
Total return—
CAGR (annualized)—

CAGR smooths volatility into a single yearly rate — the standard way to compare investments across different time spans.

1. Nominal APY vs. Real Post-Inflation Yield

A common pitfall in yield farming and staking is prioritizing high nominal APY percentages without factoring in baseline network token inflation. For instance, if a network offers 14% nominal staking rewards but dilutes circulating supply by 10% annually, your real purchasing power expansion is only ~3.6%.

2. Liquid Staking Derivatives (LSTs) & Capital Efficiency

Liquid staking protocols (such as Lido stETH, Rocket Pool rETH, and JitoSOL) allow institutional participants to maintain yield generation while retaining liquidity for DeFi lending and liquidity provision. However, LSTs introduce smart contract and depeg risk that must be modeled into portfolio variance.

Partner Recommendation
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What CAGR Tells You

An investment that goes $10,000 → $19,500 in 10 years did not earn "9.5% per year" — it earned a CAGR of ~6.9%. CAGR (compound annual growth rate) is the single smooth yearly rate that gets you from start to finish, and it is how professionals compare investments.

The formula

CAGR = (Final ÷ Initial)^(1 ÷ Years) − 1

Why it beats "average return"

A fund up 50% then down 30% averages "+10%" but actually lost money ($10k → $10.5k... wait: $10k × 1.5 = $15k, × 0.7 = $10.5k — a 5% total gain, ~2.5% CAGR). Averages lie; CAGR does not.

Benchmarks worth knowing

Run your own portfolio through the calculator above, then project it forward with our compound interest calculator.

Investment Return Calculator — Frequently Asked Questions

What is CAGR?

Compound Annual Growth Rate — the constant yearly rate that grows an initial investment to its final value. Formula: (Final ÷ Initial)^(1 ÷ Years) − 1.

CAGR vs average annual return?

Average return ignores compounding and volatility drag. CAGR reflects what actually happened to your money — always use CAGR to compare investments.

What is a good CAGR?

Beating ~7% real (inflation-adjusted) long-term puts you ahead of broad stock market history. Anything consistently above 10% nominal over decades is exceptional.

Does CAGR include dividends?

It should — use total return (price change + reinvested dividends) as your final value for an honest figure.

Can CAGR be negative?

Yes. If your final value is below your initial investment, CAGR is negative — the yearly rate at which your money shrank.

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