Average Return Calculator

Calculate average return based on cash flows or multiple investment returns

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Average Return Calculator

Calculate average return for investments based on cash flows or multiple investment returns with different holding periods. Compare investment performance with our comprehensive calculator.

Select Calculation Type

Calculate average return based on starting balance, ending balance, and cash flows over time.

Calculate average return from multiple investment returns with different holding periods.

📊 Investment Details

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$

Cash Flows

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2.
$
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$
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📈 Average Return Results

Average Annual Return
12.99%
per year
Starting Balance $5,600
Ending Balance $18,000
Net Cash Flow $7,300
Investment Period 3.5 years

📚 Understanding Average Return

Average Return

The average return is the mathematical average of returns generated over a period of time, accounting for the time value of money and cash flows.

IRR (Internal Rate of Return)

IRR is the discount rate that makes the net present value of cash flows equal to zero. It's a key metric for evaluating investment performance.

Geometric vs Arithmetic Mean

Geometric mean accounts for compounding effects and is more accurate for investment returns, while arithmetic mean is a simple average.

How to Use This Calculator

Cash Flow Based Calculation

Enter your starting balance, ending balance, and any deposits or withdrawals made during the investment period. The calculator will determine your average annual return and IRR.

Multiple Returns Calculation

Enter multiple investment returns with their respective holding periods. The calculator will compute various averages including weighted average, arithmetic mean, and geometric mean.