How to use the Average Return Calculator
The average return calculator shows the annualised growth rate (CAGR) between a start and end value.
Open the Average Return Calculator →
What you need to enter
- Starting value ($)
- Ending value ($)
- Years
The formula
CAGR = (end ÷ start)^(1 ÷ years) − 1. Total return = end ÷ start − 1.
Worked example
Using the default values in the calculator:
- Starting value ($): 10000
- Ending value ($): 18000
- Years: 6
| Annualized return (CAGR) | 10.292% |
| Total return | 80% |
| Gain / loss | $8,000.00 |
| Simple average annual return | 13.333% |
Tips for better results
- CAGR is better than a simple average for comparing investments.
- Use the same time period for fair comparisons.
Common mistakes to avoid
- Using arithmetic averages of volatile returns.
- Ignoring deposits and withdrawals in between.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.