Average Return Calculator
Calculate the arithmetic and geometric average return of your investments.
Geometric Average (CAGR)
Arithmetic Average
What is this Online Average Return Calculator for?
This calculator computes the average rate of return for a series of annual investment returns. It provides both the Arithmetic Mean (simple average) and the Geometric Mean (CAGR).
It is crucial for understanding the true performance of a volatile portfolio over time.
How does it work?
The Geometric Mean is the most accurate measure for investments because it accounts for the compounding effect of losses and gains. For example, a +50% year followed by a -50% year results in a loss, not a 0% average.