Guide
Best and Worst Year Explained
The best and worst calendar years show how uneven returns can be, even when the long term result looks smooth. They highlight concentration and stress in a simple, year-by-year view.
Published: December 26, 2025 · Updated: December 26, 2025 · By FinToolSuite Editorial
Disclaimer
- Educational purposes only, not financial advice.
- Examples are illustrative and simplified.
- Past performance is not a reliable indicator of future results.
- Market returns can be negative.
- See the Privacy Policy for data handling details.
Open the Investment History Checker
View best and worst years, the yearly breakdown, and the chart together for context.
Quick answer
- Best year is the highest calendar year return percent in your window.
- Worst year is the lowest calendar year return percent in your window.
- One outsize year can drive a large share of the total gain.
What best and worst calendar year mean
Calendar year rows come from the yearly breakdown. Best and worst years are picked from those yearly return percents. If your start or end date is mid-year, the first or last row may be partial.
Why one year can dominate returns
- Big rebounds after crashes.
- Bubbles and selloffs.
- Sector cycles.
- Small starting price base effects.
Headline CAGR can hide this concentration.
How to spot concentration using the yearly table
- Look for the top one to two years and add them mentally.
- Count negative years.
- Check whether a big down year required many years to recover.
The yearly breakdown helps you see where gains and pain were concentrated.
Use the chart to see the path
The yearly table shows snapshots; the chart shows the path between them. Use both to see when the big swings happened.
Illustrative example
| Year | Return percent |
|---|---|
| 2019 | 30% |
| 2020 | 5% |
| 2021 | 40% |
| 2022 | -35% |
| 2023 | 10% |
Best year: 40%. Worst year: -35%. The range shows volatility and concentration. Illustrative only.
Common misunderstandings
- Assuming best year means the ticker is always strong.
- Ignoring worst year and recovery time.
- Treating partial years like full years.
- Assuming next year will look like the best year.
Practical checklist
- [ ] Identify best year and worst year.
- [ ] Count negative years.
- [ ] Scan for one outsize year.
- [ ] Open the chart to see drawdowns and recoveries.
- [ ] Consider running an additional date window.
FAQ preview
Why is my best year so high?
A rebound or concentrated rally can lift one year sharply.
Why is my worst year so low?
A deep drawdown year dominates the downside in that window.
Does best year include dividends?
Check the data source to see if dividends are included in yearly returns.
Why is the first year shorter?
A mid-year start date makes the first row partial, which can affect best/worst.
How do I export the yearly table?
Use the export options in the tool to download the yearly breakdown.
Check best and worst years now
Open the tool, view best/worst years, and pair them with the chart and yearly breakdown for context.