CAGR (annualized return)
The average yearly growth rate of an investment over several years, including compounding.
In short
As of 8 October 2026CAGR stands for compound annual growth rate, the average yearly growth rate of an investment over several years. It tells you what constant return per year would have grown the start value into the end value, including compounding. If 10,000 euros become 20,000 euros in 10 years, the CAGR is about 7.2 % a year.
CAGR stands for compound annual growth rate. It answers the question: what constant return per year would have taken me from the start value to the end value? In German you often see it as „Rendite p. a.“ (per year).
The formula is (end value / start value) to the power of (1 / years), minus 1. Unlike a simple average, CAGR accounts for compound interest. Real years swing a lot; CAGR smooths them into one number.
Example: 10,000 euros grow to 20,000 euros in 10 years. The CAGR is about 7.2 % a year, not the 10 % that the simple sum „100 % divided by 10“ suggests. The savings plan calculator lets you try out what a given annual return adds up to over time.
As of 8 October 2026 · Educational content, not investment or tax advice.