A "good" CAGR is relative and depends on the type of investment, industry, and overall market conditions. A high-growth tech stock might have a CAGR of 20% or more, while a stable utility stock might have a CAGR of 5-8%. It's often best to compare an investment's CAGR to a relevant market index (like the S&P 500) to gauge its performance.

A simple average return can be misleading because it does not account for the effect of compounding. CAGR provides a smoothed-out annual rate that represents the consistent growth required to reach the ending value. For volatile investments, the CAGR is a much more accurate measure of true performance over time.

No. This is a simple calculator that only considers the beginning and ending values. It does not factor in additional contributions, withdrawals, dividends, or brokerage fees, all of which impact your true return. For a complete and accurate calculation of your portfolio's performance, you need a comprehensive tool like Sharesight.

No. This calculator is for informational and illustrative purposes only and should not be considered financial advice. You should consult with a qualified financial professional before making any investment decisions.

This calculator as well as the Sharesight portfolio tracker does not annualise returns for periods shorter than one year to provide the most accurate and responsible performance figures, and to avoid the dangers of misleading extrapolation. Annualising a short-term return can create unrealistic expectations. For example, if an investment gains 5% in one week, a simple annualisation would project this to a 260% annual return (5% x 52 weeks). This figure is highly misleading because it incorrectly assumes the exceptional short-term performance will continue consistently for an entire year, ignoring natural market volatility. Instead, for any period less than a year, Sharesight shows the Total Return (or absolute return). This is the actual gain or loss your investment has achieved over that specific period—a factual representation of performance, not a projection. This approach aligns with financial industry best practices for transparent and ethical reporting.