📈 Average Return Calculator

Calculate average investment returns and CAGR

Investment Returns

Calculation Method:

Initial Investment ($ / ₹):

Final Value ($ / ₹):

Time Period (Years):

Total ROI: (Final Value - Initial Investment) / Initial Investment × 100%

CAGR: Compound Annual Growth Rate = [(Final/Initial)^(1/Years) - 1] × 100%

Arithmetic Mean: Simple average of periodic returns. Example: (10% + 20% + 5%) / 3 = 11.67%

Geometric Mean: Accounts for compounding. More accurate for investment returns over time.

Why Different? Arithmetic mean is always higher than geometric mean when returns vary. Geometric mean better represents actual growth.

Example: $10,000 growing to $18,000 in 5 years has CAGR = 12.47% per year