
Financial
Annualized Return Calculator
Annualized Return Calculator
Annualized Return =
Percent Return =
This Annualized Return Calculator helps you calculate the annual return based on the beginning value, ending value, and the number of years held. The annual return is the return that an investment provides over a period of time.
Percentage Return = (Ending Value - Beginning Value) / Beginning Value
Annualized Return = (1 + Percent_Return)^[(1/Number_of_Years)) -1] * 100
How to calculate annualized return?
Example: Beginning Value: $2500; Ending Value: $7000; Number of Years Held: 10
Step 1: Plug values into percentage return formula:
(7000 - 2500) / 2500 = 1.8
Step 2: Multiply value by 100 to get the percentage
1.8 * 100 = 180%
Percentage Return = 180%
Step 3: Plug values into annualized return formula:
(1 + 1.8)^[(1/10)) -1] * 100
Annualized Return = 10.84%
