How does a CAGR calculator work, and are you measuring your investment returns correctly? Learn how to calculate compound annual growth rate, understand the CAGR formula and interpret annualised investment performance. Discover why contributions and withdrawals can make simple CAGR calculations misleading, when to use XIRR instead and how to evaluate your returns against appropriate benchmarks.

What is a good CAGR for long-term investing? Is 5%, 8%, 10% or 12% considered strong performance? Discover how to evaluate compound annual growth rates against appropriate benchmarks, inflation, investment costs and portfolio risk — and why achieving a higher CAGR doesn’t automatically mean following a better investment strategy.