Calculate the annualized rate of return on an investment, accounting for both an initial lump sum and ongoing monthly contributions.
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Unlike a simple return calculation, there's no direct algebraic formula for the rate of return once monthly contributions are involved, since each contribution compounds for a different length of time. This calculator instead searches for the annual rate (compounded monthly) that, when applied to your initial investment plus your monthly contributions over the given period, produces exactly your entered ending balance.
For example, starting with 10,000, contributing 200 a month, over 10 years, and ending with a balance of 60,000, this calculator works out roughly what steady annual rate of return would explain that growth.
The ROI Calculator and CAGR Calculator both assume a single lump sum with no additional contributions along the way. This calculator is built specifically for the common real-world case of an investment or savings account that also receives regular monthly deposits, which materially changes what rate of return actually explains the account's growth.
Because each monthly contribution is invested for a different length of time, the total future value is a more complex function of the rate of return, one that generally can't be solved for algebraically. This calculator searches numerically for the rate that produces your ending balance instead.
Leave the monthly contribution at 0 and this calculator will solve for the simple annualized return between your initial investment and ending balance, similar to CAGR.
The calculator searches within a wide but bounded range of annual returns (roughly -99% to +1000%). If your ending balance falls outside what's achievable in that range, it will let you know so you can double-check your inputs.
CAGR Calculator
Calculate the compound annual growth rate between a beginning and ending value.
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