UK Average Return Calculator

Calculate CAGR (Compound Annual Growth Rate) for your investments with our simple calculator

Updated with UK market data and performance benchmarks for 2025/26

Average Return Calculator

Calculate CAGR (Compound Annual Growth Rate) for your investments

£
Starting investment amount
£
Current or final value
years
Length of investment period

Results

Annual Return (CAGR) 14.47%
Total Return 50.00%
Total Gain £5,000.00

How It Works

CAGR (Compound Annual Growth Rate): The constant annual return rate that would achieve the same total return over the investment period. This is the most accurate way to measure average annual returns.

Total Return: The percentage gain or loss from your initial investment to the final value.

Total Gain: The absolute monetary gain or loss from your investment.

UK Investment Performance Data 2025/26

UK Market Averages

  • FTSE 100 (10 year): 6.8% p.a.
  • FTSE All Share (10 year): 7.2% p.a.
  • UK Property (10 year): 5.4% p.a.
  • UK 10Y Gilts: 4.2% current yield
  • Cash ISA: 1.5% - 4.8% p.a.

Global Benchmarks

  • S&P 500 (10 year): 12.4% p.a.
  • MSCI World (10 year): 9.1% p.a.
  • MSCI Emerging Markets: 3.8% p.a.
  • Global Property: 6.2% p.a.
  • Gold (10 year): 4.1% p.a.

Risk Metrics Guide

  • Sharpe Ratio >1.0: Good
  • Sharpe Ratio >2.0: Excellent
  • Beta <1.0: Less volatile than market
  • Beta >1.0: More volatile than market
  • Alpha >0: Outperforming expectations

Cost Impact

  • 1% annual fee: ~27% of total returns over 30 years
  • Platform fees: £0-£200+ annually
  • Dealing costs: £0-£12 per trade
  • Fund OCF: 0.05%-2.5% annually
  • ISA wrapper: Tax-free growth