Required return

The CAGR you need to grow today's balance into a target balance over N years.

Present value ($)

Target value ($)

Years: 20

Required CAGR

12.20%/yr

Grow $50,000 → $500,000 in 20 years

Stretch — beats long-run equity returns. Requires above-average asset selection or alpha.

Formula

r = (FV / PV)^1/n − 1 — the geometric mean rate of return needed to compound PV into FV over n years. No contributions assumed; for goal-driven savings with monthly deposits use the monthly-contribution calculator.

Illustrative only. Calculator outputs assume constant inputs and ignore taxes, fees, inflation, and market volatility unless stated. For research and educational purposes only — not financial advice.