Annualized Return Calculator

Estimate annualized return, CAGR, total profit, ROI, real annualized return, and after-tax annualized return from starting and ending investment values.

Calculate Annualized Return

Formula: annualized return = (ending value ÷ starting cost basis)^(1 ÷ years) - 1.
Enter starting value, ending value, and years held to calculate annualized return.

How the annualized return calculator works

Starting cost basis:
Starting value plus included contributions and fees, minus included withdrawals.

Adjusted ending value:
Ending value plus included income, minus included fees if selected.

Annualized return:
The yearly compound return needed to grow from the starting cost basis to the adjusted ending value.

Real annualized return:
The annualized return after subtracting the effect of inflation.

Why use an annualized return calculator?

Annualized return makes investment returns easier to compare across different holding periods.

It is useful for stocks, ETFs, crypto, index funds, retirement accounts, portfolio reviews, and historical investment examples.

What this calculator can estimate

Frequently asked questions

Is annualized return the same as CAGR?

For a simple beginning value and ending value, annualized return and CAGR are usually the same calculation.

Why use annualized return instead of total return?

Total return shows the full gain, while annualized return shows the average yearly compound return over the holding period.

Can this handle contributions?

Yes, but it is a simplified estimate. Exact time-weighted or money-weighted returns require exact cash flow dates.

Can this be used for stocks, ETFs, or crypto?

Yes. It works for any investment where you know the starting value, ending value, and years held.