Annualized Rate of Return Calculator

An annualized rate of return (ARR) is a way of expressing how much an investment grows per year on average, even if the investment was held for more or less than one year.

It converts any financial return (whether that be achieved over days, months or multiple years) into a yearly percentage rate that allows for easy comparison between different investments.

An ARR effectively answers the question: “If my investment had grown at a steady rate each year, what would that rate be?”

The simple and free tool available on this page can be used to compute an annualized rate of return by measuring how an initial value grows to its final value between two dates in time.