Annualized Return Calculator
Turn a starting value, ending value and holding period into a compound annual growth rate (CAGR).
Your numbers
Use one currency for all amounts. Changing this selector changes formatting only; it does not convert values.
Annualized return (CAGR)
10%- Total return
- 21%
- Change in value
- $2,100.00
How the calculation works
CAGR is the constant annual growth rate linking the starting and ending values. It assumes no additional deposits or withdrawals. Include reinvested income in the ending value. For irregular cash flows, use a money-weighted return calculation such as XIRR instead.
Worked example
An investment growing from 10,000 to 12,100 in two years has a 21% total return and a 10% compound annual return.
Common question
Can I annualize a period shorter than a year?
Yes: enter a fraction, such as 0.5 for half a year. This extrapolates the observed rate and can exaggerate short-term performance; it does not predict the next year.