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Return Metrics Calculator

Compute CAGR, effective annual rate (APY), and Rule of 72 estimates for investment and savings scenarios.

Return metric

$
$

CAGR

13.32%

$50,000 ā†’ $120,000 over 7 years

CAGR

13.32%

How it works

Return metrics translate growth into comparable rates. CAGR (compound annual growth rate) answers: ā€œWhat steady annual rate would turn my start value into my end value over this many years?ā€

Effective annual rate (APY-style) converts a nominal rate with a compounding frequency into a true yearly yield, which helps when comparing accounts that compound monthly vs annually.

The Rule of 72 is a quick mental shortcut: divide 72 by an annual percent return to estimate years to double. It is approximate and works best for everyday mid-single-digit to low-double-digit rates.

Use these tools when you already have start/end values or a stated rate and want a clean comparisonā€”not as a stock-picking signal.

For full accumulation with contributions, switch to the Investment Calculator. For savings-rate retirement timing, use Early Retirement.

Frequently asked questions

When should I use CAGR instead of average return?
CAGR describes the smoothed annual rate that connects a start value to an end value. It is often more useful than an arithmetic average of volatile yearly returns when you care about multiperiod growth.
Is APY the same as APR?
Not always. APR is a nominal quoted rate; APY/effective annual yield includes compounding. This tool focuses on effective annual conversion from a nominal rate and frequency.
How accurate is the Rule of 72?
It is a rule of thumb. It is handy for quick estimates and teaching, but CAGR math is better when you need precision.
Can CAGR be negative?
Yes. If the end value is below the start value, the implied annual rate is negativeā€”the annualized rate of decline over the period.

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