Your compound annual growth rate from starting to current net worth.

Net worth changes over years, but the raw numbers don't tell you how well you're doing. Going from 50,000 to 100,000 in 10 years looks good — but that's only 7.2% compound growth, which barely keeps pace with a balanced portfolio return. The same doubling in 5 years? That's 14.9% CAGR — meaningful outperformance.

CAGR (compound annual growth rate) is the single number that normalises net worth change across different time periods. It answers "if my growth had been smooth and constant, what rate would have produced this result?" That makes it comparable to investment returns, market indices, and savings account rates.

For most people, net worth growth comes from three sources: income saved, investment returns, and property equity. High CAGR in early career often reflects saving — you're starting from near-zero so each pound saved moves the needle. Later, investment returns dominate as your asset base grows.

How to use it

Input your net worth from a past point (statement from X years ago, or rough estimate), your current net worth, and the number of years between them. The tool calculates total growth (the raw change), total growth percentage, and CAGR.

What the result means

A CAGR above your expected portfolio return means you're adding capital beyond what investments produce alone — you're saving effectively. Below your portfolio return and it suggests withdrawals, debt accumulation, or underperforming assets eating into growth. Compare your CAGR to broad market returns (roughly 7% real for global equities) to benchmark.

This is a tracking and reflection tool, not financial advice. Consult a qualified professional for personal planning.

Quick example

With starting net worth of 50,000 and current net worth of 150,000 (plus years elapsed of 10), the result is 11.61%. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Starting Net Worth, Current Net Worth, and Years Elapsed. The rate and the time horizon usually dominate — compounding means a small change in either reshapes the final figure more than a similar shift in contribution size. Test this by doubling one input at a time.

What's happening under the hood

Standard CAGR formula. Result is the geometric mean annual growth rate that would transform starting value into ending value over the given period. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

What to do with the result

The figure is deliberately confronting. Don't overreact — a large total doesn't mean the behaviour is wrong, just that it's expensive over a lifetime. Use the number as a prompt to check whether the spending still reflects what you value.

What this doesn't capture

This is an illustration, not a prediction. The specific figure depends entirely on your inputs — change any assumption and the headline moves. The value is in the pattern it reveals, not the exact pound figure.