Investment Return Calculator
Calculate your investment growth, total return, and CAGR. Compare your expected return against historical benchmarks.
Rate data sourced from FRED® API — Updated: April 5, 2026
Investment Details
Final Value
$145K
Total Growth
$87K
Total Return
149.26%
CAGR
14.29%
Your investment grows to $145K in 20 years
You contribute $58K total. Investment growth adds $87K — a 149.26% total return with a 14.29% CAGR.
Benchmark Comparison
| Benchmark | Annual Rate | Final Value | Total Return | vs Your Rate |
|---|---|---|---|---|
| Your Rate | 7.00% | $145K | 149.26% | — |
| S&P 500 (Hist. Avg) | 10.70% | $251K | 332.08% | $-106K |
| S&P 500 (Inflation-Adj) | 7.00% | $145K | 149.26% | +$0 |
| US Bonds (Hist. Avg) | 4.50% | $102K | 76.17% | +$42K |
| Savings Account | 4.50% | $102K | 76.17% | +$42K |
Year-by-Year Breakdown
| Year | Balance | Annual Growth | Contributed | Total Growth |
|---|---|---|---|---|
| 1 | $13K | $801 | $2K | $801 |
| 2 | $17K | $1K | $2K | $2K |
| 3 | $20K | $1K | $2K | $3K |
| 4 | $24K | $2K | $2K | $5K |
| 5 | $28K | $2K | $2K | $6K |
| 6 | $33K | $2K | $2K | $9K |
| 7 | $38K | $2K | $2K | $11K |
| 8 | $43K | $3K | $2K | $14K |
| 9 | $49K | $3K | $2K | $17K |
| 10 | $55K | $4K | $2K | $21K |
| 11 | $61K | $4K | $2K | $25K |
| 12 | $68K | $4K | $2K | $29K |
| 13 | $75K | $5K | $2K | $34K |
| 14 | $83K | $6K | $2K | $40K |
| 15 | $92K | $6K | $2K | $46K |
| 16 | $101K | $7K | $2K | $53K |
| 17 | $111K | $7K | $2K | $60K |
| 18 | $121K | $8K | $2K | $68K |
| 19 | $133K | $9K | $2K | $77K |
| 20 | $145K | $10K | $2K | $87K |
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Frequently Asked Questions
What is CAGR and how is it calculated?
CAGR stands for Compound Annual Growth Rate. It represents the rate at which an investment would have grown if it grew at a perfectly steady rate each year. The formula is CAGR = (Ending Value / Beginning Value)^(1/Years) - 1. CAGR is useful because it smooths out volatility and lets you compare investments held for different time periods on an equal footing.
What is the average stock market return?
The S&P 500 has historically returned approximately 10.7% per year including dividends since 1957. After adjusting for inflation the real return is closer to 7% annually. However these are long-term averages — individual years can vary dramatically with gains exceeding 30% and losses exceeding 30% in the same decade. The presets above let you model different return scenarios.
What is the difference between total return and CAGR?
Total return is the overall percentage gain from start to finish. CAGR converts that into an equivalent annual rate making it easier to compare investments held for different periods. For example a 100% total return over 10 years equals a 7.18% CAGR. A 100% return over 5 years equals a 14.87% CAGR — the same total gain but much faster.
How much does the S&P 500 return per year?
The S&P 500 has averaged approximately 10.7% per year in total returns including dividends since 1957. After inflation the real return is approximately 7% annually. Use the S&P 500 preset buttons above to model your investment using these historical averages. Remember past performance does not guarantee future results.
What is a good investment return?
Most investors use the S&P 500 historical average of about 10% as a benchmark. Returns consistently above 10% per year over a long period would be considered excellent. Returns of 5-7% annually are solid for more conservative or diversified portfolios. The current 10-year Treasury yield of 4.31% represents the risk-free rate — any investment should aim to beat this rate to justify the additional risk.
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