Annualized Return Calculator

Written by

Updated September 26, 2026 •1 min read

Share Print Save

Compare investment performance on a common yearly basis with a compounded annualized rate.

What this calculator does

Choose total-return mode or beginning-and-ending-values mode, then enter the holding period in years. Decimal years are supported.

How the calculation works

Annualized return = (1 + R)^(1/n) − 1, or equivalently (Vf/Vi)^(1/n) − 1. Monthly and quarterly equivalents use the 1/12 and 1/4 powers of one plus the annualized rate.

Worked example

A 20% total return over 2 years annualizes to about 9.54% per year. Growth from $10,000 to $12,000 over 2 years gives the same result.

Limitations and notes

Annualization assumes an equivalent constant compound rate. Short-term annualized figures may be misleading as forecasts, and the calculator does not separately model fees, taxes, volatility, or cash flows.