The geometric average return formula also known as geometric mean return is a way to calculate the average rate of return on an investment that is compounded over multiple periods. On this page is a compound annual growth rate calculator also known as CAGRIt takes a final dollar amount as input along with a time frame and starting amount. Geometric Mean Product of 1 Rn 1n -1.
Geometric Growth Models General motivation Sequence of population sizes through time N tN t1N t2.
Investors find the geometric mean value for their investments to get compounding return values. 5th Square Root of 1 0051 011 021 051 02 1 -003621. If we find the geometric mean of 12 13 and 15 we get 13276. Investors find the geometric mean value for their investments to get compounding return values.