Find the average and annualized return from yearly returns or from start and end values.
Returns of 10%, −5%, 20% and 8% have an arithmetic average of 8.25% but an annualized (geometric) return of 7.877% — the figure that matches what your money actually did.
An investment's yearly returns rarely match a neat average. The arithmetic average adds the returns and divides by the number of years; the geometric average (compound annual growth rate, CAGR) shows the steady rate that gives the same final result. This calculator gives both and the total return.
The geometric figure is lower than the arithmetic one whenever returns vary, and the gap grows with volatility. Use the second tool for CAGR from a start and end value. For single investments see the ROI Calculator and the Investment Calculator.
The calculator applies the standard financial formulas step by step.
| Item | Value |
|---|---|
| Number of years | 4 |
| Arithmetic average | 8.25% |
| Geometric average (CAGR) | 7.877% |
| Total return | 35.43% |
| Growth of ₹1,00,000 | ₹1,35,432.00 |
| Case | CAGR |
|---|---|
| ₹1,00,000 grows to ₹1,50,000 in 5 years | 8.447% |
| ₹1,00,000 grows to ₹2,00,000 in 7 years | 10.409% |
| ₹1,00,000 grows to ₹2,00,000 in 10 years | 7.177% |
| ₹1,00,000 grows to ₹5,00,000 in 15 years | 11.326% |
| ₹1,00,000 falls to ₹80,000 in 3 years | -7.168% |
The arithmetic average is a simple mean; the geometric average (CAGR) accounts for compounding and reflects your actual growth.
Compound annual growth rate: the steady yearly rate that takes a starting value to an ending value over a number of years.
Losses hurt more than gains help: a 50% loss needs a 100% gain to recover, so volatility drags the compound return below the simple average.
(End ÷ start)^(1 ÷ years) − 1. Doubling in 7 years is about 10.4% a year.
CAGR, because it reflects what the money actually earned over the period.
Yes — enter them as negative percentages, but not −100% or lower.
It uses the standard formula: arithmetic = Σ returns ÷ n The full method and a worked example are shown on this page.
No. The calculator gives estimates for planning and learning. Real offers vary by lender, product and date, so confirm the details with your bank, lender or a qualified adviser before deciding.
Yes. The maths is identical in any currency; only the currency symbol shown in the results differs.
No. Everything is calculated in your browser and nothing you enter is uploaded or saved.
