Average Return CalculatorFree online financial calculator — instant results, no sign-up

Arithmetic Average = (Σ r_i) / n
Cumulative Return = [Π (1 + r_i / 100) - 1] × 100
Geometric Average = {[Π (1 + r_i / 100)]^(1 / n) - 1} × 100

• r_iIndividual yearly percentage return for year i
• nTotal count of return periods entered
• ΣSum of all percentage returns
• ΠProduct of all growth factors (1 + r_i / 100)

The tool parses the input string by splitting on commas and whitespace to extract a list of finite numerical values. It then sums the values and divides by the count for the arithmetic average, multiplies the individual period growth multipliers (1 + r / 100) to find the cumulative compound return, and takes the n-th root of that cumulative product to determine the annualized geometric return.

These are the calculator's starting values and the results it actually produces for them.

1. 1Parse the input text by commas or spaces into a series of numerical returns, r_1 through r_n.
2. 2Calculate the arithmetic mean by summing all values and dividing by the total count n.
3. 3Convert each return to a multiplier (1 + r_i / 100) and multiply them together to calculate the cumulative factor.
4. 4Subtract 1 from the cumulative factor for total cumulative return, and raise it to the power of 1/n minus 1 to get the annualized geometric return.

Further reading

• SEC Investor.gov
• Wolfram MathWorld