⚠️ For educational purposes only. Not financial advice. Always use proper risk management.

Annualized Return (CAGR)

Compound Annual Growth Rate from start to end value.

CAGR (Annualized Return)
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Total Return
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Dollar Gain
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Doubling time (Rule 72)
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$10k → 5yr projection

CAGR vs. Total Return

Total return tells you how much you made overall; CAGR normalizes that to a per-year figure, making strategies of different durations comparable. A 50% gain over 5 years is only an 8.4% CAGR — far less impressive than it sounds.

The S&P 500 has historically returned ~10% CAGR before inflation. A trading strategy should significantly beat this threshold to justify the time and risk over passive investing.