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Understand the method before using any result. The details below describe the purpose and assumptions for this tool.
How the average return calculator works
The average return calculator helps you estimate results using the assumptions and values you provide. Review the formula and example before relying on the result.
Formula and assumptions
Arithmetic average return = sum of periodic returns ÷ number of periods. This is not a compounded annual growth rate.
Example
Returns of 10%, 0% and 5% have an arithmetic average of 5%.
Important information
Results depend on the values, jurisdiction, date and assumptions you enter. Financial products, tax rules and medical recommendations may vary by location and change over time. Verify critical results with reliable sources.