Skip to content
ENExplore Calculators

Annualised Return Calculator

Work out annualised return instantly with clear inputs, formula shown and shareable results.

About Annualised Return Calculator

The compound annual growth rate smooths a multi-year result into the constant yearly rate that would produce the same ending value. It is the only fair way to compare investments held for different lengths of time.

Formula

CAGR

CAGR = (Final/Initial)^(1/years) - 1

Worked example

With the default values below, Annualised Return Calculator returns Annualised Return (CAGR) of 11.533%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Amount Investedminimum 0
200,000
Current Valueminimum 0
385,000
Years Heldaccepts 0.25–60
6

Results

Annualised Return (CAGR)
11.533%
Total Return Over The Period
92.50%
Growth Multiple
1.925
Years To Double At This Rate
6.35 years

Step by step

  1. 1Values used
  2. 2CAGR
  3. 3Annualised Return (CAGR)= 11.533
  4. 4Total Return Over The Period= 92.50
  5. 5Growth Multiple= 1.925
  6. 6Years To Double At This Rate= 6.35 years

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Why not just divide total return by years?

That ignores compounding and overstates the annual figure, badly so over long periods.

Does CAGR describe the ride?

No. It says nothing about volatility — two investments with the same CAGR can have very different year-to-year paths.

Related Calculators

Annualised Return Calculator | Calcrivo