Find the average annual return (CAGR) of an investment from its start and end value.
What this calculator does
Enter the initial and final value and the years held to get the compound annual growth rate, total return and gain.
Worked example
The calculator opens with a years held of 6. On those figures the annual return (CAGR) is 10.29%. Underneath, Total return comes out at 80% and Total gain at $8,000. Change any field and every figure updates as you type.
Using the calculator
- Enter your figures in the fields provided.
- The result updates as you type.
- Review the breakdown below the main number.
The formula
CAGR = (final ÷ initial)^(1 ÷ years) − 1
FAQ
What is average annual return?
The smooth yearly rate (CAGR) that links the start and end values over the period.
Is it the same as simple average?
No — CAGR accounts for compounding, unlike a simple average of yearly returns.