Investing
Total return
The percentage gain over the whole holding period.
The Formula
Total = (final - initial) / initial
The percentage gain over the whole holding period.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| I | Initial value | currency | Amount invested at the start. |
| F | Final value | currency | Value at the end, including income. |
What Each Symbol Means
Icurrency
Initial value
Amount invested at the start.
Fcurrency
Final value
Value at the end, including income.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate investment return page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Investment Return, filed under Finance. Every number the guide produces comes from substituting into this one line.