Geometric Mean Formula: The geometric mean is calculated by doing a time value of money calculation. PV = -initial investment FV = initial investment * (1 + rate of return from year one) * (1 + rate of return from year two) .. * (1 + rate of return from year n) N = number of years entered
Solve for the interest rate.
Geometric Mean Definition Our free Geometric Mean Calculator makes it easy to calculate the geometric mean return. The geometric mean return on an investment is also referred to as the time weighted rate of return and is used by a wide number of financial professionals. To use the online Geometric Mean Calculator all you have to do is enter in the annual returns separated by a comma, the initial investment amount, and then press calculate. Use this online financial calculator to start learning how to calculate the geometric mean return of an investment now!
How to Calculate Geometric Mean Let's be honest - sometimes the best geometric mean calculator is the one that is easy to use and doesn't require us to even know what the geometric mean formula is in the first place! But if you want to know the exact formula for calculating geometric mean then please check out the "Formula" box above.