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Average Return Calculator
Find the total and average annual return of an investment from its starting and ending value, including the compound annual growth rate (CAGR).
When someone says a fund returned 9% a year on average, this is the calculation behind the claim: add up the returns of each period and divide by the number of periods. This calculator does it in seconds for any list of yearly or monthly returns.
How to use this calculator
- Enter the return of each period, one after another, as percentages.
- Check that all entries cover equal periods (all years, or all months).
- Press calculate to see the average return per period.
A word of caution
The simple average can flatter a volatile investment. A fund that gains 50% one year and loses 30% the next averages +10%, yet $100 became $105, not $121. For the full picture over time, compare the result with the compound annual growth rate (CAGR) as well.
Frequently asked questions
What is the difference between average return and CAGR?
Average return is the plain mean of period returns. CAGR is the single steady rate that would produce the same final value, and it accounts for compounding and volatility.
Should returns be entered as positive and negative numbers?
Yes. Enter gains as positive percentages and losses as negative ones, for example -12 for a 12% loss.
Can I use this for stock or fund returns?
Yes, for a quick overview. For performance reporting, funds also publish time-weighted returns, which remove the effect of money added or withdrawn.