⚠️ 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)
Total Return
Dollar Gain
Doubling time (Rule 72)
$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.