Average Return Calculator
Find an investment's annualized return (CAGR).
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About the Average Return Calculator
The compound annual growth rate (CAGR) is the smoothed yearly return that gets you from a starting value to an ending value. Enter the beginning value, ending value, and years held to see both the annualized return and the total return. CAGR is the fairest way to compare investments held for different lengths of time.
How to use the Average Return Calculator
- 01Enter your beginning value, ending value, and years held.
- 02Read the result instantly — it recalculates as you type.
- 03Adjust the numbers to model different scenarios.
Frequently asked questions
What is CAGR?
Compound annual growth rate — the constant yearly rate that turns the beginning value into the ending value over the period. It accounts for compounding.
CAGR vs average return?
A simple average can overstate performance with volatility; CAGR reflects the actual compounded result, so it's the more honest figure.