What is annualized return and how is it calculated?

Annualized return, also called CAGR (Compound Annual Growth Rate), expresses an investment's overall return as if it grew at a steady rate each year. The formula is: CAGR = (End Value / Start Value)^(1 / Years) − 1. For example, if $10,000 grows to $18,000 over 6 years, CAGR = (18000/10000)^(1/6) − 1 = 10.3% per year.

What is the difference between total return and annualized return?

Total return is the overall percentage gain or loss from start to end — for example, +80%. Annualized return (CAGR) converts that into an equivalent yearly rate — for example, +10.3%/yr over 6 years. Total return does not account for how long the investment was held, while annualized return does, making it easier to compare investments with different holding periods.

How do I calculate annualized return including dividends?

To include dividends, add the total dividends received per share to the sell price before calculating CAGR: Total CAGR = ((Sell Price + Total Dividends Per Share) / Buy Price)^(1 / Years) − 1. The Stock Return tab handles this automatically — enter the dividend yield or total dividends received and it calculates both the price CAGR and the dividend add-on separately.

How do I use the Rule of 72 to estimate doubling time?

The Rule of 72 estimates how many years it takes to double an investment: Doubling Time ≈ 72 / Annual Return Rate. For example, at 9% per year: 72 / 9 = 8 years to double. The Goal Planner tab calculates this automatically based on either the required rate or a known rate you enter.

What annual return do I need to reach my financial goal?

Use the Goal Planner tab. Enter your starting amount, target amount, and the number of years you have. The calculator uses the CAGR formula in reverse — Required Rate = (Target / Start)^(1 / Years) − 1 — to find exactly what annual return you need. It also compares that rate to historical averages for the S&P 500, NASDAQ-100, global stocks, and bonds so you can assess how realistic your goal is.

Can I compare multiple investments by annualized return?

Yes. The Compare tab lets you enter up to 6 investments — each with a start value, end value, and holding period — and compares their CAGR side by side. A ranked horizontal bar chart highlights the best and worst performers, and the summary shows the average, highest, and lowest CAGR across all investments.

Is this annualized return calculator free?

Yes. The Annualized Return Calculator Pro on StockToolHub is completely free to use with no registration, account, or subscription required.

Annualized Return Calculator Pro — CAGR, Stock Return & Goal Planner

Investment Values

Starting Value

Ending Value

Time Period

Input Method

Number of Years

Annualized Return (CAGR)

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Enter start value, end value & time period

Total Return

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Total Gain / Loss

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Time Period

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$1 Grows To

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Investment Growth Over Time

Compare Investments

Investment Name	Start Value ($)	End Value ($)	Years	CAGR	Total Return

Best Investment

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Compared

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Avg CAGR

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Highest CAGR

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Lowest CAGR

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CAGR Comparison (ranked)

What each tab calculates

CAGR

Compound Annual Growth Rate from any start and end value. Supports number of years or exact start/end dates. Includes total gain, $1 growth, milestone table and a full growth chart.

Stock Return

Annualized return for a stock position including both price appreciation and dividend income. Input yield % or total dividends received. Shows price vs dividend return attribution.

Goal Planner

Find the exact annual return rate needed to grow a starting amount to a target in a set number of years. Reverse-calculate final value from a known rate. Includes Rule of 72 and benchmark context.

Compare

Side-by-side CAGR comparison of up to 6 investments. Each row takes start value, end value and years. A ranked horizontal bar chart instantly highlights the best and worst performer.