Available Slot
NetGrow

Annualized Rate of Return Calculator

Compute annualized rate of return (CAGR) and total return from initial value, final value, and holding period. Compare investments over different time spans.

Use the Annualized Rate of Return Calculator

Enter initial value, final value, and holding period. Annualized rate (CAGR) and total return % are calculated.

Investment values

Initial and final value, plus holding period length.

Results

Annualized rate of return (CAGR)
8.45%
Total return (%)
50%

CAGR = (Final / Initial)^(1 / Years) - 1. Use it to compare holdings of different lengths.

How this calculator works

You enter initial value, final value, and holding period (in years, months, or days). The calculator converts the period to years and computes CAGR = (Final/Initial)^(1/Years) - 1 and total return % = (Final - Initial)/Initial.

How to interpret your results

CAGR lets you compare performance across different time lengths. A 10% CAGR over 5 years means the investment grew at an equivalent 10% per year. Total return shows the overall gain or loss over the period.

Common mistakes to avoid

Using the wrong period unit (e.g. months as years); including contributions or withdrawals in the final value without adjusting; or comparing CAGR to a simple average of yearly returns instead of understanding it is geometric.

FAQs

What is annualized rate of return?▾
It is the constant annual rate that would turn your initial value into the final value over the holding period. Same as CAGR (compound annual growth rate).
Which inputs matter most?▾
Initial value, final value, and the length of the period. Small errors in the period (e.g. years vs months) can change the result noticeably.
What assumptions does this calculator make?▾
It assumes a single lump sum with no contributions or withdrawals. Returns are compounded once per year for the CAGR formula.
How accurate are the results?▾
The math is exact for the inputs given. Real-world returns are volatile; use this for comparison and planning, not as a guarantee.
Can I use this for planning decisions?▾
Yes. Use it to compare historical holdings or to set target growth rates over a given horizon. Do not rely on it as the only input for investment choices.

Related tools

Browse all calculators on NetGrow.

NetGrow

Annualized Rate of Return Calculator

Compute annualized rate of return (CAGR) and total return from initial value, final value, and holding period. Compare investments over different time spans.

Use the Annualized Rate of Return Calculator

Enter initial value, final value, and holding period. Annualized rate (CAGR) and total return % are calculated.

Investment values

Initial and final value, plus holding period length.

Results

Annualized rate of return (CAGR)
8.45%
Total return (%)
50%

CAGR = (Final / Initial)^(1 / Years) - 1. Use it to compare holdings of different lengths.

How this calculator works

You enter initial value, final value, and holding period (in years, months, or days). The calculator converts the period to years and computes CAGR = (Final/Initial)^(1/Years) - 1 and total return % = (Final - Initial)/Initial.

How to interpret your results

CAGR lets you compare performance across different time lengths. A 10% CAGR over 5 years means the investment grew at an equivalent 10% per year. Total return shows the overall gain or loss over the period.

Common mistakes to avoid

Using the wrong period unit (e.g. months as years); including contributions or withdrawals in the final value without adjusting; or comparing CAGR to a simple average of yearly returns instead of understanding it is geometric.

FAQs

What is annualized rate of return?▾
It is the constant annual rate that would turn your initial value into the final value over the holding period. Same as CAGR (compound annual growth rate).
Which inputs matter most?▾
Initial value, final value, and the length of the period. Small errors in the period (e.g. years vs months) can change the result noticeably.
What assumptions does this calculator make?▾
It assumes a single lump sum with no contributions or withdrawals. Returns are compounded once per year for the CAGR formula.
How accurate are the results?▾
The math is exact for the inputs given. Real-world returns are volatile; use this for comparison and planning, not as a guarantee.
Can I use this for planning decisions?▾
Yes. Use it to compare historical holdings or to set target growth rates over a given horizon. Do not rely on it as the only input for investment choices.

Related tools

Browse all calculators on NetGrow.