Average Return Calculator

Free Online Average Return Calculator

Average Return · CAGR Calculator · Return Comparison.

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Average Return Calculator

Average Return · CAGR Calculator · Return Comparison

Enter annual returns for up to 10 years. This calculator shows both the arithmetic mean (simple average) and the geometric mean — the only metric that accurately reflects true compound investment performance. They often differ significantly.

Annual Returns (enter % for each year)

Portfolio Context

Starting Portfolio Value

Inflation Rate (for real return)

Benchmark Annual Return

% (e.g. S&P 500)

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Return Analysis

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Geometric Mean (True CAGR)

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Arithmetic Mean (Simple Avg)

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📊 Annual Returns Visualised

Arithmetic Mean

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Geometric Mean (CAGR)

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Volatility Drag

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Standard Deviation

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Best Year

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Worst Year

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Years with Positive Return

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Real Geometric Return

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💰 Portfolio Value Progression

🔮 Return Scenarios

Actual final value (geometric compounding):—

If arithmetic mean had been used (overstate):—

Benchmark performance over same period:—

Alpha vs benchmark (CAGR difference):—

If returns were perfectly smooth (same CAGR, no volatility):—

Average Return Insights

CAGR (Compound Annual Growth Rate) is the smoothed annual return that takes an investment from its beginning value to its ending value. Formula: CAGR = (End ÷ Start)^(1/years) − 1. It's the single most accurate way to compare investment returns across different time periods.

Investment Values

Starting Value

Ending Value

Number of Years

yrs

Inflation Rate

Capital Gains Tax Rate

Benchmark CAGR (for comparison)

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CAGR Analysis

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CAGR

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Real CAGR (after inflation)

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After-Tax CAGR

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CAGR in Context — Historical Benchmarks

Starting Value

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Ending Value

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Total Gain / Loss

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Total Return %

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CAGR

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Real CAGR

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Rule of 72 (doubling)

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vs Benchmark

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🔮 CAGR Scenarios

Value in 10 more years at same CAGR:—

CAGR needed to double in 5 years:—

CAGR needed to double in 10 years:—

Value of $10,000 at this CAGR for 20 years:—

Inflation-adjusted ending value (real):—

CAGR Insights

Compare up to four investments side-by-side — by CAGR, total return, risk-adjusted return, and after-tax real return. Use this to evaluate competing investment options on a level playing field before committing capital.

Shared Settings

Investment Amount (each)

Capital Gains Tax Rate

Inflation Rate

Investments to Compare

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Comparison Result

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Best CAGR Winner

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Best Risk-Adjusted (CAGR ÷ Volatility)

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📊 Final Value Comparison on $10,000

Inv. 1 — CAGR

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Inv. 2 — CAGR

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Inv. 3 — CAGR

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Inv. 4 — CAGR

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Inv. 1 — After-Tax Real

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Inv. 2 — After-Tax Real

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Inv. 3 — After-Tax Real

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Inv. 4 — After-Tax Real

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🔮 Comparison Scenarios

If holding period extended 5 more years:—

Best after-tax real return winner:—

Cost of choosing worst vs best investment:—

CAGR spread — best vs worst:—

Compounding advantage of winner over 30 yrs:—

Return Comparison Insights

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