Enter your numbers
Adjust any field and recalculate — figures are pre-filled with a typical example.
Results will appear here.
How it works
Formula & explanation
Average Return Calculator uses the following calculation:
CAGR = (End/Begin)1/years − 1
This is a simplified model intended for planning and education. Real-world offers from lenders, institutions, or tax authorities may include additional fees, rules, or adjustments not reflected here.
FAQ
Frequently asked questions
Why use CAGR instead of average yearly return?
CAGR accounts for compounding and smooths out volatility, giving a more accurate picture of growth than a simple average of yearly percentage changes.
Does CAGR reflect the ride along the way?
No — it only reflects the beginning and ending values, so two investments with the same CAGR can have very different volatility.
Is CAGR the same as annualized return?
Yes, they refer to the same concept: the constant rate that would produce the same growth over the period.
Related