Free online tool

Average Return Calculator

Enter beginning and ending values and the number of years.

Instant calculation

Average Return Calculator

Enter beginning and ending values and the number of years.

Your numbers stay in this browser. Nothing is uploaded or saved.

Three clear steps

How to use this calculator

  1. 01

    Enter beginning value

    Type the starting investment value.

  2. 02

    Enter ending value

    Type the final investment value.

  3. 03

    Enter years

    Type the number of years between start and end.

The formula

How this calculation works

Compound Annual Growth Rate smooths returns into a single annual rate.

Average Return Calculator

CAGR = (Ending value ÷ Beginning value)^(1÷Years) − 1

(18000÷10000)^(1/8)−1 = 1.8^0.125−1 ≈ 0.0762

Check the method

Worked examples

Each example follows the same formula used by the calculator.

$10,000 grew to $18,000 over 8 years — CAGR?

(18000÷10000)^(1/8)−1 = 1.8^0.125−1 ≈ 0.0762≈ 7.62% CAGR

Common questions

Questions about this calculation

What is the Average Return Calculator?

The Average Return Calculator helps you calculate the average annual return of an investment over multiple years. Enter your values and select Calculate to get an instant result.

How is the result calculated?

Compound Annual Growth Rate smooths returns into a single annual rate.

Can you show an example?

Example: $10,000 grew to $18,000 over 8 years — CAGR? — ≈ 7.62% CAGR.

Is my data saved when I use the Average Return Calculator?

No. All calculations run locally in your browser. Your inputs and results are never uploaded, stored or shared with anyone.

Is the Average Return Calculator free to use?

Yes. The Average Return Calculator is completely free. No account, sign-up or payment is required. It works on mobile, tablet and desktop.