justyourcalculatorAverage Return Calculator
Average a series of returns the right way, or annualize total growth.
- 100% Free
- Instant Results
- No Sign Up
Average Return Calculator
Arithmetic vs geometric average return and CAGR
Geometric average (compound) return
7.768%
per period
- Arithmetic averageSimple mean; overstates compound growth when returns vary
- 8%
- Cumulative return
- 45.36%
- Standard deviation
- 7.71%
- Periods
- 5
- Ending amount
- $14,536.37
- Balance
How it was calculated
- Arithmetic = (10 + -5 + 15 + 8 + 12) / 5 = 8%
- Geometric = (1.1 × 0.95 × 1.15 × 1.08 × 1.12)^(1/5) - 1 = 7.768%
More Financial Calculators
View all calculators- ROI CalculatorReturn on investment, total and annualized
- IRR CalculatorIRR, NPV and MIRR from a list of cash flows
- Investment CalculatorGrow an investment, or solve for rate, time or deposit
- Mutual Fund CalculatorFund growth after sales loads and expense ratios
- Mortgage CalculatorMonthly payment with taxes, insurance and PMI
- Loan CalculatorPayments for amortized, deferred and bond-type loans
- Auto Loan CalculatorCar payment with tax, fees, trade-in and rebates
- Compound Interest CalculatorGrow a balance, or convert between compounding periods
- Retirement CalculatorHow much you need, how to save and what you can spend
- Calculators
- 204+
- Free to use
- 100%
- Results as you type
- Instant
How the average return calculator works
The arithmetic average adds the returns and divides by their count. The geometric average multiplies the growth factors (1 + return), takes the nth root and subtracts 1. Only the geometric average tells you the steady rate that would turn your starting amount into your ending amount.
The gap matters when returns swing: +50% then -50% averages 0% arithmetically, but you actually lost 25%, a geometric average of -13.4% a year. CAGR is the geometric average between a start and end value.
Using and checking your result
Published by JustYourCalculator. Check the units and assumptions above, and compare a known example before relying on the output. Calculations use browser arithmetic and may round displayed values.
This is an educational estimate, not a lender quote, tax filing calculation or investment recommendation. Actual costs depend on current rules, fees and your circumstances. Verify important decisions with official sources and a qualified adviser.
Share links may contain your input values. Anyone with the URL can read them; avoid sharing sensitive personal or financial information.