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Math

Geometric Mean Calculator

The geometric mean is the n-th root of the product of n positive numbers — the right kind of average for growth rates, annualised returns and any data that compounds multiplicatively. A +10 % year followed by a −10 % year arithmetically averages to 0 %, but the geometric mean honestly returns −0.50 % — and your capital really has shrunk.

Geometric mean (GM)

Arithmetic mean (AM)

The ordinary "average" — sum divided by n.

Harmonic mean (HM)

n ÷ Σ(1/xᵢ). Best for averaging speeds or rates per unit.

Other statistics

Count
Sum
Product Π xᵢ
Min
Max
Spread (max ÷ min)

Formula

GM = (x₁ · x₂ · … · xₙ)^(1/n) = exp( (Σ ln xᵢ) / n ) Annualised return (CAGR) = GM − 1, when each xᵢ is (1 + period return). AM-GM-HM inequality: AM ≥ GM ≥ HM, with equality iff every xᵢ is the same.

Frequently asked

How is the geometric mean different from the arithmetic mean — and when should I use which?

The arithmetic mean is "sum divided by n" — good for quantities that add (heights, test scores, monthly salaries). The geometric mean is "product to the 1/n" — good for ratios that compound (annual returns, population growth, CPI, anything multiplicative). Quick test: if your numbers come from "previous × factor," use geometric; if from "previous + quantity," use arithmetic. Three yearly returns of +10 %, +20 %, −30 % average arithmetically to 0 %, but their geometric mean (over 1.10, 1.20, 0.70) is ≈ −1.96 % — the real annualised return.

Can I use this to compute CAGR (annualised return)?

Yes — that is the textbook use case. Convert each year's return to a growth ratio (e.g. +8 % → 1.08, −3 % → 0.97) and enter the lot. The geometric mean is the equivalent per-year growth factor, so CAGR = (geometric mean) − 1. Compared with our ROI / CAGR calculators, this one lets you plug in an arbitrary list of yearly returns at once.

Why must every value be positive?

Because the geometric mean is defined through logarithms, and ln 0 / ln of a negative number are undefined. If you have signed percentage changes (e.g. −20 %), first convert them to growth ratios (1 + change = 0.80) so every input is positive, then take the geometric mean. The calculator flags zero and negative tokens and skips them automatically.

How does the geometric mean relate to the harmonic mean?

They sit in a chain of inequalities: AM ≥ GM ≥ HM for any list of positive numbers, with all three equal only when every value is identical. The harmonic mean is best for "rate-per-unit" data such as average driving speed when you spend equal distance (not time) at each speed. This calculator shows all three so you can pick the one that fits your problem.

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