Average Return Calculator

Calculate average return based on cash flow.

How to Use This Calculator

Step 1: Enter Starting Information

• Starting Balance: Enter the initial amount in your investment account and the date you began
• Ending Balance: Enter the current or final balance and the corresponding date

Step 2: Add Cash Flows

• Deposits: Money you added to the investment (contributions, transfers in)
• Withdrawals: Money you removed from the investment (distributions, transfers out)
• For each cash flow, specify the exact date it occurred
• Use the "Add More" button to include additional transactions

Step 3: Analyze Results

• The calculator computes your Internal Rate of Return (IRR)
• This represents your annualized return accounting for all cash flows and their timing
• The chart visualizes your investment timeline and cash flow patterns

Example Scenario

Default Example:

• start with $5,200 on January 1, 2022
• deposit $4,000 on February 14, 2023
• withdraw $1,200 on August 1, 2023
• deposit another $3,600 on December 18, 2024
• and end with $16,000 on August 15, 2025

The calculator determines that this scenario yields approximately 13.31% annualized return, accounting for the timing of each cash flow.

References

Government and Regulatory Sources

• U.S. Securities and Exchange Commission (SEC): Guide to Mutual Fund Investing - Official guidance on investment returns and performance metrics
• Federal Reserve Economic Data (FRED): Economic Research - Federal Reserve Bank of St. Louis - Historical interest rates and market benchmarks
• Bureau of Economic Analysis (BEA): U.S. Department of Commerce - Economic indicators and inflation data
• U.S. Treasury: Daily Treasury Yield Curve Rates - Risk-free rate benchmarks