Annualized Rate of Return Calculator
Result
Annualized Rate of Return Calculator The Annualized Rate of Return Calculator (CAGR) tells you the average yearly growth rate of an investment over a holding period. It accounts for compounding, so it answers: at what steady annual rate would your beginni — free online calculator.
Formula
- Annualized Rate of Return Calculator calculates its result from Ending Value, Beginning Value, Years. It uses the formula CAGR = (Ending Value ÷ Beginning Value)^(1 ÷ Years) − 1. Change any input to recalculate the result instantly.
- The main inputs are Ending Value, Beginning Value, Years. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: Annualized Rate of Return
- Ending Value: 2
- Beginning Value: 3
- Years: 12
Using Ending Value = 2, Beginning Value = 3, Years = 12, the calculated result is -0.0332242943.
Sample result: Calculating…
Frequently asked questions
What does the Annualized Rate of Return calculate?
Annualized Rate of Return Calculator The Annualized Rate of Return Calculator (CAGR) tells you the average yearly growth rate of an investment over a holding period. It accounts for compounding, so it answers: at what steady annual rate would your beginni — free online calculator.
Which values should I enter?
Enter Ending Value, Beginning Value, Years using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: CAGR = (Ending Value ÷ Beginning Value)^(1 ÷ Years) − 1.
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.