Investment Return Calculator
CAGR, not the average of the yearly percentages.
Work out Investment Return. CAGR, not the average of the yearly percentages. Shows the number in today's money too.
Annualised return (CAGR)
7.18%
100.0% in total · 4.56% after inflation
CAGR is the geometric mean — the constant rate that would have produced the same result. It is not the average of the yearly percentages, and the difference is not small: +50% followed by −50% averages to zero arithmetically and actually leaves you down 25%. The real return uses the Fisher relation, (1+nominal)/(1+inflation)−1, rather than simply subtracting. At low rates the two are close; at high inflation subtracting overstates what you kept. This measures a single lump held throughout. Money added or withdrawn along the way needs a money-weighted return instead, which is what IRR computes.
How the Investment Return Calculator works
Enter what you put in, what it is worth now and how long you held it. The annualised figure is the geometric mean — the constant rate that would have produced the same result — which is not the average of the yearly returns and can differ from it sharply.
Also known as: cagr calculator · annualized return calculator · compound annual growth rate calculator · investment roi calculator
Not financial advice. This calculator is for planning and illustration, not financial advice. Real products carry fees, taxes, and terms it does not model. Confirm figures with your lender or a qualified adviser before committing.
Frequently asked questions
What is CAGR?
Compound annual growth rate: the single constant rate that would take the starting value to the ending value over the period. It smooths out volatility into one comparable number.
Why not just average the yearly returns?
Because that overstates volatile results badly. Up 50% then down 50% averages to zero arithmetically and actually leaves you down 25%. The geometric mean captures what really happened; the arithmetic mean does not.
How do I find the real return?
Divide rather than subtract: (1 + nominal) ÷ (1 + inflation) − 1. At low rates subtracting is a close approximation, but at high inflation it overstates what you kept.
Does this work if I added money along the way?
No. This measures a single lump held throughout. Contributions and withdrawals need a money-weighted return, which is what IRR calculates.
Put this calculator on your own site
Free to use, on any site, commercial or not. Paste this where you want it to appear. It is a plain iframe, so it works in WordPress, Squarespace, Wix, Webflow, Ghost and anything else that accepts HTML.
<iframe src="https://www.thecalclibrary.com/embed/investment-return-calculator" width="100%" height="640" style="border:1px solid #e2e8f0;border-radius:12px" loading="lazy" title="Investment Return Calculator"></iframe>
<p style="font:13px/1.5 system-ui,sans-serif;margin:6px 0 0;color:#64748b">Powered by <a href="https://www.thecalclibrary.com/investment-return-calculator" style="color:#64748b">Investment Return Calculator</a> from The Calc Library</p>The only condition is that the credit line below the frame stays in place. That one line is what pays for the tool being free — it is how anyone else finds it.