Average Return Calculator | Arithmetic vs. Geometric CAGR
Compare arithmetic vs. geometric average returns. Calculate historical portfolio compound annual growth rate (CAGR), standard deviation, and volatility...
Geometric Mean Return (CAGR)
5.252%
Cumulative Return: 29.17%
Arithmetic average7.000%
Standard Deviation21.095%
Volatility Drag1.748%
Ending Balance (Actual)$12,917
Historical Grid
Year 1
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Year 2
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Year 3
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Year 4
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Year 5
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Dollar Compounding Paths
Projections & Actions
The Simple average TrapStandard arithmetic averages assume returns are independent and non-compounding, which systematically overstates wealth. The true realized return is the Geometric Mean (CAGR). In this case, simple averages overstate your final balance by $1,109.