Annualized Return Calculator
Calculate annualized return
Calculate an investment's annualized return (compound annual growth rate) from its initial value, final value and the years elapsed. It lets you compare investments of different lengths.
Calculate the annualized return
Result
Annualized return
8.45%
- Total return
- 50%
- Gain
- €5,000.00
Formula version: 1.0.0
How to use the annualized return calculator
- Enter the investment's initial value.
- Enter the final value.
- Enter the years elapsed and review the annual return.
Annualized return formula
Annualized return = ((final value / initial value)^(1 / years) − 1) × 100
It's the constant rate that, year after year, would take the initial value to the final value.
Annualized return example
If €10,000 grows to €15,000 in 5 years, the total return is 50% and the annualized return is 8.45%.
Illustrative example with the data shown; not a guaranteed outcome.
Assumptions and limitations
- No contributions or withdrawals during the period.
- The annualized return assumes even growth each year.
Frequently asked questions
Why not divide 50% by 5 years?
Because growth compounds: 10% a year for 5 years would give more than 50% in total.
What if there were contributions?
Use the investment return calculator, which accounts for them.
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See investments calculatorsIndicative result for information only; not financial or tax advice. Read the legal notice · How we calculate results
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