Finance
Compound annual growth rate
Calculate the compound annual growth rate between a positive starting and ending value.
Calculators / Finance / Average investment return
Average investment return calculator
Calculate arithmetic and compound annual growth rates from a starting and ending value.
On this page
Total return50%
Compound annual growth8.45%
Simple annual average10%
Calculator controls
How to calculate
Calculate arithmetic and compound annual growth rates from a starting and ending value.
Total return = (end/start-1)*100; Compound annual growth = ((end/start)^(1/years)-1)*100; Simple annual average = (end/start-1)*100/years
Worked example
Example inputs
Starting value: 10000 · Ending value: 15000 · Years: 5
Example resultTotal return: 50 % · Compound annual growth: 8.4471771 % · Simple annual average: 10 %
Assumptions and limits
The simple annual average and CAGR answer different questions. Neither describes volatility or cash flows during the period.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Understanding the result
Calculate arithmetic and compound annual growth rates from a starting and ending value. The displayed figures use the inputs and formula shown on this page.
When this tool is useful
Use the average investment return to compare a scenario, check an estimate, or verify a manual calculation.
Understanding your inputs
| Input | What to enter |
|---|---|
| Starting value | Enter a number of at least 0.000001 and no more than 1000000000000. |
| Ending value | Enter a number of at least 0.000001 and no more than 1000000000000. |
| Years | Enter a number of at least 0.01 and no more than 100. |
Frequently asked questions
What should I check before using the average investment return result?
The simple annual average and CAGR answer different questions. Neither describes volatility or cash flows during the period.
Is this average investment return result exact?
It is exact for the stated mathematical model and entered values. Real-world results can differ when rates, timing, fees, definitions or measurement conditions differ.