Return Parameters

Calculation Method:

Starting Value ($)

Ending Value ($)

Length of Investment (years)

Calculation Results

Geometric Mean (CAGR)	—
Arithmetic Mean (Simple Average)	—
Total Cumulative Return	—

When looking at investment returns over time, there are two distinct types of averages:

Arithmetic Mean: The simple average of a list of annual returns. It is calculated by adding the returns together and dividing by the number of years. It does not account for the compounding effect.
Geometric Mean (CAGR): The actual compound annual rate at which your investment grew. It reflects the steady annual rate that would grow the starting balance to the ending balance. Geometric mean is always lower than or equal to the arithmetic mean due to volatility.

CAGR = (Ending Value / Starting Value)^(1 / Years) - 1

Disclaimer. This calculator is for informational purposes only. Past returns do not predict future performance.