Average Return Calculator

Paste periodic returns (percent or decimal). Use arithmetic mean to find simple average, geometric mean for compound-average (better for investment returns).

Periodic returns (comma / space / newline separated). Examples: 5%, -2%, 3% or 0.05 -0.02 0.03

Periods per year (for annualization) Set to 12 for monthly returns, 4 for quarterly, 1 for yearly, etc.

Display as Percent (e.g. 5.00%) Decimal (e.g. 0.05)

Metric	Value

Notes: Arithmetic mean = sum(ri)/n. Geometric mean (periodic) = (Π(1+ri))^(1/n)-1. Annualized geometric mean = (Π(1+ri))^(periodsPerYear/n)-1. Use geometric mean for compound returns.

Easy-to-Use Calculator for Average Return What It Does

 determines an investment's average return over multiple time periods (years, months, etc.). Helps understand consistent performance.

 Key Words Annual Returns (%): Yearly profit/loss percentages (e.g., Year 1: 10%, Year 2: 5%).

 Number of Years (n): Total investment duration.

 Average Return (%): The mean return across all years.

 Formula (Simple Average Return)

 Average Return (%)=Sum of Annual ReturnsNumber of YearsAverage Return (%)=Number of YearsSum of Annual Returns​

 Example

 Year 1 Return: 12%

 Return in Year Two: 8% Return in Year 3: 5% Calculation: Average Return = 12 x 8 x 53 = 253 x 8.33 % Average Return = 312 x 8 x 5 = 325 x 8.33 % Your investment increased on average by 8.33 % per year. When is It Useful? comparing the performance of mutual funds, stocks, or SIPs. ✔ Checking long-term investment consistency.

 ✔ Estimating future growth (if past returns are stable).

 Limitations

  Ignores compounding (for an accurate growth rate, use CAGR). ✖ Misleading for volatile investments (e.g., +50% & -30% averages to 10%, but actual returns differ).