Average Return Calculator
Average Return Calculator
Annual Returns
Performance Analysis
Average Returns
Risk Metrics
How it works: This calculator analyzes investment performance across multiple periods. The arithmetic mean is the simple average of returns, while the geometric mean accounts for compounding and is more accurate for investment analysis. CAGR (Compound Annual Growth Rate) shows the constant rate of return that would give the same final value. Standard deviation measures volatility and risk.
Overview
Advanced investment performance calculator for analyzing returns across multiple periods. Calculate arithmetic mean, geometric mean, compound annual growth rate (CAGR), and standard deviation of investment returns. Perfect for evaluating investment performance and comparing different investments.
About
Average Return Calculator
Professional calculator for investment performance analysis with multiple return metrics.
Features:
- Calculate arithmetic and geometric mean returns
- Determine compound annual growth rate (CAGR)
- Calculate standard deviation for risk analysis
- Compare investment performance across periods
- Analyze risk-adjusted investment returns
FAQ
What's the difference between arithmetic and geometric mean?
Arithmetic mean is the simple average of returns. Geometric mean accounts for compounding and is more accurate for investment performance over time.
When should I use CAGR?
Use CAGR to compare investments over different time periods or to calculate the constant return rate that would turn your initial investment into its final value.
What does standard deviation tell me?
Standard deviation measures investment volatility. Higher standard deviation indicates greater risk and return variability.
Why is geometric mean better for investments?
Geometric mean accounts for the compounding effect and provides the true average return over time, especially important with volatile returns.
How do I interpret investment performance?
Consider both returns and risk (standard deviation). Higher returns with lower risk are generally better than high returns with high volatility.