Annualised Return Calculator helps compute annualised return on your savings/investment. It helps you to benchmark your portfolio return vs other investments.
To determine how much funds you'll be earning on annual basis from an investment, you've to calculate the annualized returns on your investments. By measuring these returns you will be in a better position to make strategic and educated investment decisions in life.
The calculation of an investment's rate of return acquired in the period of an annual year is known as an annualized return. The annualized return is portrayed as the geometric average which shows what you will earn if the annual return is compounded over a while. Do bear in mind the calculation won't reveal the potential price fluctuations and/or volatility of an investment.
One of the formula to calculate the annualized returns of investment is as follows :
Total Return = Final Amount – Initial Amount
Total Return % = 100*(Total Return/ Initial amount)
Annualised Return %= ((1+ TR/100)^(1/t)-1)*100 where TR is Total Return and t is time duration.
To make the calculations simpler, use Fintra's Annualised Return Calculator. The three fields to fill in are:
Hit the 'Submit' button and the results will appear on the side of the calculator.
How is XIRR or Annualised Returns useful for investors?