Annualized investment return

Annualized investment return: use initial value, final value, holding period. Review the formula, worked example and calculation steps.

Inputs

Use the units shown

Scenario estimate using the assumptions shown. Verify costs and rates with your provider; this is not a guaranteed return or lending decision.

RESULT
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Formula & explanation
CAGR % = [(final/initial)^(1/years)−1] × 100

Variables & units

Initial value
currency · minimum 0.01, maximum 1000000000000
Final value
currency · minimum 0.01, maximum 1000000000000
Holding period
years · minimum 0.000001, maximum 100

Worked example

1,000 growing to 1,210 over two years gives 10% per year.

Assumptions

Assumes no intermediate contributions or withdrawals; this is a geometric return, not an arithmetic average.

Formula version 1.0.0. JavaScript floating-point arithmetic applies. Results display up to 6 decimal places; stored values retain available precision. Use the units shown.

Practice with an example

Use the default input values to find the answer. The reset icon restores those values.

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