🚀 Annualized Return Calculator - Discover Your Investment's True Performance!
Unlock your investment's real growth rate! Calculate annualized returns (CAGR) instantly and see how your investments stack up against market benchmarks. Get detailed insights in seconds!
What is Annualized Rate of Return?
Annualized rate of return measures the average yearly growth of an investment over a specific time period. It accounts for compound growth, showing what constant annual return would produce the same final result.
The formula is: ((Ending Value ÷ Beginning Value)^(1/Years)) - 1
This calculator helps you evaluate investment performance and compare different investments on an equal basis, regardless of their time periods.
How to Use This Calculator
Enter your investment's starting value, current value, and the time period to calculate the annualized return.
Required Inputs:
- Beginning Value: Your initial investment amount
- Ending Value: Current or final value of your investment
- Time Period: Duration of the investment (years, months, or days)
The calculator will show your annualized return percentage, total return amount, and performance rating compared to market benchmarks.
Understanding the Formula
The annualized return formula calculates the compound annual growth rate (CAGR) of your investment:
((Ending Value ÷ Beginning Value)^(1/Years)) - 1
This formula accounts for compounding, giving you the equivalent annual return rate that would produce the same final result.
Example:
If you invested $10,000 and it grew to $15,000 over 3 years:
((15,000 ÷ 10,000)^(1/3)) - 1 = 14.47% per year
When to Use This Calculator
Use this calculator to evaluate and compare investment performance across different time periods and asset types.
Common Applications:
- Compare different investment options
- Evaluate portfolio performance
- Assess mutual fund or stock returns
- Analyze real estate investment performance
- Track retirement account growth
Note: This calculator assumes no additional contributions or withdrawals during the investment period. For investments with regular contributions, consider using other specialized calculators.
What is Annualized Rate of Return?
Annualized rate of return measures the average yearly growth of an investment over a specific time period. It accounts for compound growth, showing what constant annual return would produce the same final result.
The formula is: ((Ending Value ÷ Beginning Value)^(1/Years)) - 1
This calculator helps you evaluate investment performance and compare different investments on an equal basis, regardless of their time periods.
How to Use This Calculator
Enter your investment's starting value, current value, and the time period to calculate the annualized return.
Required Inputs:
- Beginning Value: Your initial investment amount
- Ending Value: Current or final value of your investment
- Time Period: Duration of the investment (years, months, or days)
The calculator will show your annualized return percentage, total return amount, and performance rating compared to market benchmarks.
Understanding the Formula
The annualized return formula calculates the compound annual growth rate (CAGR) of your investment:
((Ending Value ÷ Beginning Value)^(1/Years)) - 1
This formula accounts for compounding, giving you the equivalent annual return rate that would produce the same final result.
Example:
If you invested $10,000 and it grew to $15,000 over 3 years:
((15,000 ÷ 10,000)^(1/3)) - 1 = 14.47% per year
When to Use This Calculator
Use this calculator to evaluate and compare investment performance across different time periods and asset types.
Common Applications:
- Compare different investment options
- Evaluate portfolio performance
- Assess mutual fund or stock returns
- Analyze real estate investment performance
- Track retirement account growth
Note: This calculator assumes no additional contributions or withdrawals during the investment period. For investments with regular contributions, consider using other specialized calculators.