# Average Annual Return Calculator

A mutual fund is an investment scheme for a group of people who invests their money in bonds and other security. The rate of return is a gain or loss on the investment for a period of time. A loss in the rate of return is called negative return. If the rate of return is for a year, then it is called as annual return, which can be calculated using aar calculator. Enter the total number of years and rate of return for each year in the average annual return calculator, it calculates aar.

A mutual fund is an investment scheme for a group of people who invests their money in bonds and other security. The rate of return is a gain or loss on the investment for a period of time. A loss in the rate of return is called negative return. If the rate of return is for a year, then it is called as annual return, which can be calculated using aar calculator. Enter the total number of years and rate of return for each year in the average annual return calculator, it calculates aar.

Code to add this calci to your website

#### Formula :

Average Annual Return (AAR) = ( r_{1} + r_{2} +...+ r_{n}) / n
**Where,**
r_{1} + r_{2} +...+ r_{n} = Return Rate For Each Year
n = Number Of Years
### Example:

A shareholder in a company wants to find the average annual return(AAR) for the rate of return of 3 years 10%, 50%, 25%.

#### Solution:

AAR = (10 + 50 + 25) / 3

= 28.3333%