Annualized Return Calculator
Calculate annualized returns, CAGR, and analyze investment performance with comprehensive metrics and benchmarking. Calculate investment returns, CAGR, and analyze performance with comprehensive metrics.
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Return Analysis
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Investment Comparison
How to Use This Annualized Returns Calculator
This calculator helps you find the annualized return of your investment using the Compound Annual Growth Rate (CAGR) formula. Just enter your initial investment amount, the final value of your investment, and the total holding period in years, months, and days. You can also optionally provide start and end dates to automatically calculate the holding period. The calculator will then compute key metrics like total return, annualized return, simple annual return, return multiple, and more. Use these insights to evaluate your investment performance and compare it against common benchmarks.
Understanding Annualized Returns
An annualized return shows the average growth of an investment each year. It uses the Compound Annual Growth Rate formula, which tracks how money grows over time through compounding. This method gives a clear picture of long term performance with one simple rate.
How the CAGR Formula Works
The formula uses the starting value, the ending value, and the number of years. It is written as CAGR equals ending value divided by beginning value raised to one over the number of years minus one. This calculation shows steady yearly growth even when real returns move up and down.
Why Annualized Returns Matter
Annualized returns make it easy to compare different investments. They show how compound growth shapes long term results and help you judge real performance. Many people use common benchmarks for context. The S and P five hundred has a long average near ten percent. Bonds often land between four and six percent. Real estate grows near six to eight percent. Inflation has a long average near three percent. Savings accounts usually yield less than two percent. By comparing your annualized return to these benchmarks, you can see how well your investment performed.