Annualized Return
Free Annualized Return calculator with clear step-by-step results.
About Annualized Return
Annualized return standardises returns so different holding periods can be compared.
Formula
Formula
Annualized = (end/start)^(1/years) − 1
Worked example
With the default values below, Annualized Return returns Annualized Return of 10.00%. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Starting valueminimum 0 $
- 10,000 $
- Ending valueminimum 0 $
- 16,105 $
- Years heldaccepts 1–50
- 5
Results
- Annualized Return
- 10.00%
- Total Gain
- $6,105.00
- Total Return
- 61.1%
Step by step
- 1Values used
- 2Formula
- 3Annualized Return= 10.00
- 4Total Gain= $6,105
- 5Total Return= 61.1
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 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- 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.
Frequently Asked Questions
How does this calculator work?
Annualized return standardises returns so different holding periods can be compared.
Why does this matter?
Past returns do not predict future results.