WiseCalc

Average Return Calculator

Calculate the average annual return on your investments over multiple time periods.

Annual Returns

Enter 1–64 complete numbers, separated by commas, with a dot for decimals. Each value is a percentage for one full year; include 0 for a zero-return year.

Arithmetic average is the simple mean of the yearly percentages. Geometric average links yearly growth factors and annualizes the compound result over these equal one-year periods. Use total-return percentages that already account for income and external cash flows as appropriate. This calculator does not adjust dated cash flows or calculate a money-weighted return.

Results

One-year periods: 5

Arithmetic Average
6.40%
Simple mean of yearly percentages
Geometric Average
6.2672%
Annual compound rate from linked yearly factors

Annual Return Percentages

How to use the Average Return Calculator

Enter your starting value, ending value, time period, and any major contributions or withdrawals if the calculator supports them. This gives you a cleaner picture of how the investment actually performed.

Compare the average return with a benchmark such as the S&P 500, a target retirement return, or the return you assumed in your financial plan. Context matters more than the raw percentage alone.

Use the result to evaluate process, not just outcome. A weak average return may suggest high fees, too much cash drag, poor timing, or simply a conservative allocation that matched your risk tolerance.

Frequently Asked Questions