Formula
The compound annual growth rate is:
Annual return = (ending / starting) ^ (1 / years) − 1
Contributions during the period are not removed. Use the investment-growth page when you added money along the way.
Assumptions
- The ending value is what you have after the years you type.
- Growth is treated as a constant yearly rate.
Worked example
$10,000 growing to $20,000 in 10 years is an annual return of 7.18%.
Input definitions
- Starting value
- The value at the beginning.
- Ending value
- The value after the stated years. Zero is allowed.
Limitations
This is an estimate, not a loan offer, tax filing, or investment advice. The currency control changes the symbol only.
Questions
Is this the same as a simple average?
No. A value that doubles in 10 years did not gain 10% every year. The compounded rate is lower.
What if the ending value is lower?
The annual return is negative.