Financial Calculators
Average Return Calculator
Calculate average annual return using arithmetic or geometric mean.
What is the Average Return Calculator & How does it work?
The Average Return Calculator helps investors determine the average annual growth rate of their investments over a specified period. This tool supports both arithmetic and geometric means, providing insights into year-by-year performance.For arithmetic mean, add up all yearly returns and divide by the number of years. For geometric mean (CAGR), multiply all yearly returns (in decimal form) and take the nth root, where n is the number of years.
Arithmetic Mean = \frac{\sum_{i=1}^{n} R_i}{n}
R = yearly return, n = number of years
Geometric Mean (CAGR) = \left(\prod_{i=1}^{n} (1 + R_i)\right)^{\frac{1}{n}} – 1
R = yearly return, n = number of years
Parameters
USD
USD
years
Arithmetic Mean Return
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Geometric Mean Return (CAGR)
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Results are for informational purposes only and do not constitute professional advice.