Annualized Return Calculator
Convert multi-year cumulative gains into an annualized Compound Annual Growth Rate (CAGR) and calculate your asset doubling time via the Rule of 72.
Compound Annual Growth Rate (CAGR) Formula
CAGR = (Ending Value / Initial Value)^(1 / t) − 1 | Absolute Gain % = ((Ending − Initial) / Initial) × 100 | Doubling Years (Rule of 72) = 72 / (CAGR × 100)- Initial Value: Starting portfolio or asset price at time 0.
- Ending Value: Final valuation at the end of the holding period.
- t: Exact number of years (or fractional years) elapsed.
- Rule of 72: Quick mathematical rule of thumb estimating how many years it takes for your investment to double at your CAGR.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Assumes no interim deposits or withdrawals between the starting date and ending date.
Frequently Asked Questions
How does CAGR differ from average annual return?
Average return is the simple arithmetic mean of annual percentages, which distorts volatile performance. CAGR measures true geometric growth—the exact steady annual rate required to turn your starting balance into the ending balance.
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