About this geometric mean calculator
The geometric mean is the nth root of the product of n numbers. For compounding it is the right average: returns of +10%, +25%, −5% and +5% are factors 1.10, 1.25, 0.95 and 1.05, whose geometric mean is 1.0822, an average 8.22% per year. The arithmetic mean, 1.0875, overstates it; the harmonic mean, 1.0770, is lower still.