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Reviewed by David Chen, CFA. Last Updated: December 2025.

Use the VTSAX Annualized Return Calculator to quickly estimate the Future Value, Initial Investment, or required Annual Rate of Return for your Vanguard Total Stock Market Index Fund (VTSAX) investments based on compound growth.

VTSAX Annualized Return Calculator

Calculated Result

VTSAX Annualized Return Formula

This calculator is based on the compound annual growth rate (CAGR) formula, which is used to solve for one variable when the other three are known. VTSAX returns are typically modeled using this rate.

$$V = P \cdot (1 + R)^T$$
Formula Source: Investopedia: Compound Annual Growth Rate

Variables

  • Initial Investment (P): The principal amount you initially invested into VTSAX (Present Value).
  • Ending Balance (V): The total value of your investment after the specified time period (Future Value).
  • Investment Years (T): The number of years the investment has been held or will be held.
  • Annual Rate of Return (R): The compounded, smoothed annual growth rate, expressed as a percentage.

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What is VTSAX Calculator?

VTSAX stands for Vanguard Total Stock Market Index Fund Admiral Shares. It is one of the most popular and broadly diversified mutual funds available, tracking the performance of the entire U.S. stock market, including small-, mid-, and large-cap stocks. Due to its low expense ratio and broad exposure, it is often a core holding in long-term investment portfolios, especially for retirement.

The VTSAX Annualized Return Calculator helps investors project the potential growth of their shares or analyze past performance to determine the Compound Annual Growth Rate (CAGR). By solving for the missing variable (P, V, T, or R), you can reverse-engineer historical returns, set future financial goals, or understand the impact of time and rate on your wealth accumulation.

How to Calculate VTSAX Annualized Return (Example)

Assume you invested $10,000 and it grew to $30,000 over 10 years. What was the Annual Rate (R)?

  1. Identify Variables: $P = \$10,000$, $V = \$30,000$, $T = 10$ years. We solve for $R$.
  2. Apply Formula: $R = \left(\frac{V}{P}\right)^{\frac{1}{T}} – 1$
  3. Substitute Values: $R = \left(\frac{30,000}{10,000}\right)^{\frac{1}{10}} – 1 = (3)^{0.1} – 1$.
  4. Calculate Result: $R \approx 1.1161 – 1 = 0.1161$.
  5. Convert to Percentage: The Annualized Return Rate is approximately 11.61%.

Frequently Asked Questions (FAQ)

Is VTSAX a good long-term investment?

Historically, VTSAX, representing the entire US stock market, has provided strong long-term returns, making it a cornerstone for many retirement strategies. However, past performance is not indicative of future results.

What is the difference between VTSAX and total return?

Total return includes all capital gains and dividends for a specific period. The Annualized Rate (R) calculated here is the constant, smoothed geometric return rate that would produce the same total return over the investment years.

Can I solve for time (T) if I know the rate (R)?

Yes. By leaving the Investment Years (T) field empty and entering the other three variables (P, V, R), the calculator will use logarithms to determine how long it took to achieve that growth rate.

How does the calculator handle zero returns?

If the Annual Rate (R) is 0%, the Ending Balance (V) must equal the Initial Investment (P) for the formula to be consistent. If a zero rate is used to solve for Time (T) or Rate (R), the calculator will prevent division by zero or other mathematical inconsistencies.

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