Investment Return Calculator
Total return measures how much an investment gained in percentage terms. Annualised return converts that into a per-year rate, which is the only fair way to compare a three-year holding with a ten-year one.
Total return
6105.00%
- Annualised return
- 999.99%
- Total gain
- $6,105.00
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
Total return = (final value - initial) / initial; Annualised = (1 + total)^(1/years) - 1
- initial
- Amount invested at the start
- final
- Value at the end, including dividends
- years
- Holding period in years
- annualised
- Compound annual growth rate
How to check the result by hand
- 1
Record the initial amount
Use the total you invested, including any fees paid to acquire the position.
- 2
Record the final value
Include the market value plus any dividends, interest or distributions received along the way. Total return requires income.
- 3
Compute the total return
Subtract the initial amount from the final value and divide by the initial amount. A gain of 6,105 on 10,000 is 61.05%.
- 4
Annualise it
Divide the final by the initial, raise to the power of one over the years, and subtract one. Over five years, 1.6105 to the power of 0.2 gives 10%.
- 5
Compare with alternatives
Use the annualised figure to compare against a benchmark or another investment over a different holding period.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Investment Return page.