Investment Calculators

Annualized Return Calculator

Convert a total holding-period return into an equivalent annualised return for fair comparison.

About the calculator

What is the Annualized Return Calculator?

The Annualized Return Calculator is a free online tool that helps you make informed decisions about your money. Enter your numbers and the calculator gives you instant, accurate results.

Use it to compare scenarios, plan goals and validate assumptions — all without signing up.

Formula used
  • Annualised Return
    Annualised = (Final/Initial)^(1/n) − 1

Why use the Annualized Return Calculator?

Financial planning works only when it's specific. The Annualized Return Calculator converts assumptions into concrete numbers — so you can choose between scenarios with confidence rather than guesswork.

How it helps

By tweaking inputs and instantly seeing the impact, you build intuition for how the underlying variables interact. This is far more useful than abstract formulas alone.

What to remember

Calculators show possible outcomes based on the assumptions you provide. Real-world results may vary; review your plan periodically and adjust as your income, goals and circumstances evolve.

Frequently Asked Questions

The equivalent yearly return that compounds to give the same final value.
Yes — annualised return for a single lumpsum is CAGR.
To compare two investments held for different durations on equal footing.
Yes — annualised smooths total return over time.
Use XIRR for SIPs because contributions occur over time.
No — it's pre-tax. For real return adjust for tax and inflation.

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