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About the Average Return Calculator
The Average Return Calculator computes the mean return of an investment across multiple periods. You enter the return for each period and receive one average return figure, expressed as a percentage per period.
The tool applies the arithmetic mean formula: Average = (r1 + r2 + ... + rn) / n, where each r is a single period's return. Inputs are the individual period returns and the total number of periods. The calculator sums the returns and divides by that count. Keep every period the same length, such as all monthly or all yearly figures, so the average is not skewed by mixed intervals. For decisions involving large sums, consider consulting a financial professional.
- Collect the return figures for each period you want to include.
- Enter each return as a percentage and confirm the number of periods.
- Run the calculation and read the average return result.