About this tool

Absolute vs Annualised Return Converter

Convert a total gain percentage into an annualised (CAGR) rate and back again for any holding period in years, months or days.

This converter moves between absolute return — the total percentage gain across a whole holding period — and annualised return, the compounded yearly rate that produces it, using the identity 1 + absolute = (1 + annualised)^years. Enter either figure with a period in years, months or days and get the other, plus the growth multiple and the naive total-divided-by-years average for comparison. It exists because fund factsheets quote absolute returns under one year and annualised returns above it, which makes side-by-side comparison misleading.

How to use Absolute vs Annualised Return Converter

1. 1

   Open Absolute vs Annualised Return Converter on AltFTool — it loads instantly in your browser.

2. 2

   Paste or upload your source content.

3. 3

   Choose the target format or conversion mode.

4. 4

   Copy or download the converted result.

Why use Absolute vs Annualised Return Converter

• Exact, not averaged

  Uses geometric compounding, so the annualised rate really does rebuild the total gain.

• Any period unit

  Accepts years, months or days, converting days at the mean Gregorian year of 365.2425 days.

• Shows the overstatement

  Prints the gap in percentage points between the true rate and the total-divided-by-years shortcut.

Common use cases

• Convert a fund's 3-year absolute return of 62% into an annualised figure before comparing it with a 5-year number.
• Work out what total gain a 12% a year expectation actually produces over a 7-year goal.
• Sanity-check a marketing claim that spreads a 90% total gain over 6 years as '15% a year'.

Frequently asked questions