Annualised Returns

Annualised return shows an investment's return as an average yearly rate over a given period. For example, a 12% annualised return means 12% earned each year. A 20% annualised return over three years means the investment grew at 20% per year, not just 20% in total.

If your money grows over many years, annualised return tells you the average growth for one year. That makes different investments easier to compare.