Geometric mean = (x₁ × x₂ × ... × xₙ)^(1/n). Use it for rates, ratios, and percentages — anywhere values are multiplied rather than added. It's always ≤ arithmetic mean (AM-GM inequality). For investment returns, geometric mean gives the true average compound rate.
How to Use
Enter your values:
- Values: Comma-separated numbers
- Result: Geometric mean computed
- Comparison: AM, GM, HM shown
GM vs AM
AM = (a+b)/2, GM = √(ab). GM ≤ AM always. Use GM for: investment returns, growth rates, ratios. Use AM for: heights, test scores, temperatures.
CAGR
CAGR = (End/Start)^(1/years) − 1. This is related to geometric mean: the geometric mean of growth factors (1+r₁)(1+r₂)... gives the CAGR factor.
Step-by-Step Instructions
- 1Enter values.
- 2View the geometric mean.
- 3Compare AM, GM, HM.
- 4Check growth rate interpretation.
- 5Review the product breakdown.