What is this calculator?
Find arithmetic and geometric average returns from period returns.
What can you use it for?
Use this tool to compare a financial scenario using the assumptions you control. Find arithmetic and geometric average returns from period returns.
How to use it
- Enter period returns (%), separated by commas.
- Select Calculate (or Generate for random tools).
- Read the answer and any additional results below the form. Check the units and the limits of the method.
Formula and method
Geometric mean = [Π(1 + return)]^(1/count) − 1
Percent returns are converted to decimal growth factors for the geometric average.
Worked example
Period returns (%), separated by commas: 10, -5, 15. The result is 6.66666667% (arithmetic mean return).
Assumptions and limits
This is a mathematical estimate using the values you enter. Confirm real product terms, fees, tax rules and dates before acting on it.
Frequently asked questions
What inputs does the Average Return Calculator need?
Use period returns (%), separated by commas. Read the answer and any additional results below the form. Check the units and the limits of the method.
What assumptions apply to the Average Return Calculator?
This is a mathematical estimate using the values you enter. Confirm real product terms, fees, tax rules and dates before acting on it.