Average Return Calculator

Calculate average return, average rate of return (CAGR), and cumulative return with our free average return calculator. This average return calculator helps you understand your investment performance. Use this average return calculator to analyze returns accurately.

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Average Return Calculator Inputs

$
$

Average Rate of Return (CAGR)

8.45%

Compound Annual Growth Rate

Cumulative Return

50.00%

Average Return

10.00%

Return Summary

Total Gain/Loss$5,000

Understanding Average Return Calculator Results

An average return calculator is essential for accurately measuring investment performance. This average return calculator provides three key metrics: cumulative return, average return, and average rate of return (CAGR).

Average return calculator metrics:

  • CAGR (Average Rate of Return): The most accurate measure, showing the smoothed annual growth rate
  • Cumulative Return: Total percentage gain or loss over the entire period
  • Average Return: Simple arithmetic mean of annual returns

Why use an average return calculator: CAGR (Compound Annual Growth Rate) is the most reliable metric as it accounts for compounding effects. This average return calculator helps you compare different investments fairly and understand true investment performance.

Disclaimer: This calculator is for educational and illustrative purposes only. Results are estimates and may not reflect actual outcomes. Investing Point does not guarantee the accuracy of these calculations and is not responsible for any decisions made based on this tool.

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