Annual Investment Return Calculator
Annualised rate of return from start and end values.
Calculate annualised rate of return from start value, end value, and years held. Shows annualised return from the values you enter.
What this tool does
Enter start value, end value, and years. The tool shows annualised return.
Enter Values
Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
20,000 grew to 32,000 over 7 years: annualised return 7.0%. Annualised (CAGR) is the true per-year rate — different from simple 60% / 7 = 8.6% which ignores compounding.
Quick example
With start value of 20,000 and end value of 32,000 (plus years of 7), the result is 6.94%. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.
Which inputs matter most
You enter Start Value, End Value, and Years. The rate and the time horizon usually dominate — compounding means a small change in either reshapes the final figure more than a similar shift in contribution size. Test this by doubling one input at a time.
What's happening under the hood
Compound annual growth rate formula. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.
Using this well
Treat the output as one point on a wider map. Run it three times — a pessimistic case, a central case, and a stretch case — and plan against the pessimistic one. That habit alone separates people who stick with an investment plan from those who bail at the first wobble.
What this doesn't capture
Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. Treat the number as one scenario, not a forecast.
Where to go next
This calculation rarely sits alone in a planning exercise. If you're running these numbers, you'll probably also want the total investment return calculator, the compound interest calculator, and the compound annual return calculator — each one answers a different question in the same territory. Treating them as a set rather than in isolation usually produces a more honest picture.
Annual return produces a CAGR figure based on the inputs provided.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Compound annual growth rate formula.
References
Frequently Asked Questions
vs simple average?
Negative return?
Include contributions?
Short horizons?
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