ANNUALIZED RETURN CALCULATOR

Annualized Return Calculator

Convert a total investment return over a holding period into an equivalent compound annual return.

Annualized return formula

Annualized return converts a multi-year total return into an equivalent compound return per year. It is not the total return divided by the number of years.

Annualized return = (1 + total return)^(1 ÷ years) − 1

When to use it

This formula assumes no deposits or withdrawals during the period. Cash flows on different dates require a money-weighted calculation such as XIRR.

Frequently asked questions

Can total return be negative?

Yes, down to −100%, which represents a complete loss.

Is annualized return a forecast?

No. It restates a past or hypothetical total return as an equivalent annual rate.

Does it handle deposits?

No. Additional cash flows require a date-aware return calculation.

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Percentage Calculator →Discount Calculator →Compound Interest Calculator →

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