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Annualized Rate of Return Calculator.

Calculate a compound annualized return from an initial value, final value, and holding period.

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Annualized return: 10 %

Annualized return

10.000%

FAQs

Is annualized return the same as profit percentage?

No. Annualized return accounts for the length of the holding period; it is not a guarantee of future performance.

Cite this calculator

Canonical URL: https://mathify.one/ru/finance/annualized-rate-of-return

Cite as: Mathify. (2026). Калькулятор: Annualized Rate of Return. https://mathify.one/ru/finance/annualized-rate-of-return

Use Cases

Compare investments with different holding periods

Use the annualized return to compare the performance of stocks, funds, or other assets that were held for different lengths of time.

Example: Compare a stock that doubled in 2 years with one that doubled in 5 years.

Evaluate portfolio performance

Assess how your overall portfolio has performed on an annual basis, accounting for the exact time you've been invested.

Example: Check if your portfolio's annualized return meets your target.

Frequently Asked Questions

What is an annualized rate of return?
It is the geometric average annual return an investment would have earned if it grew at a steady rate over the holding period. It smooths out volatility and lets you compare returns across different time frames.
How is the annualized return calculated?
The calculator uses the formula: (End Value / Start Value)^(1 / Years) - 1. The holding period is converted to years, and the result is expressed as a percentage.
Why use annualized return instead of total return?
Total return shows the overall gain but doesn't account for time. Annualized return normalizes the gain to a per-year basis, making it easier to compare investments held for different durations.

Tips & Common Mistakes

Tips

  • Use the actual start and end values, including any dividends or distributions, for a more accurate return.
  • For holding periods less than a year, the annualized return will be higher than the actual return, reflecting the compounding effect.
  • Enter the holding period in years, or convert months to years by dividing by 12.
  • Remember that annualized return is a historical measure and does not guarantee future performance.

Common Mistakes to Avoid

  • Using the total return as the annualized return without adjusting for the holding period.
  • Entering the holding period in months instead of years, which skews the result.
  • Forgetting to include additional contributions or withdrawals, which can distort the true return.

Last updated: August 13, 2026