Investment Return Calculator

This calculator measures how well an investment actually performed. It calculates three things: your total return as a percentage, your absolute gain or loss in dollars, and your annualised CAGR — the smoothed yearly return rate.

Total return formula: (Final − Initial) ÷ Initial × 100. CAGR formula: (Final ÷ Initial)^(1 ÷ Years) − 1.

CAGR is the more useful figure for comparing investments held over different time periods. It answers: what consistent annual return would have produced this result?

Use this calculator for: reviewing how a stock, fund, or portfolio has performed over any period; comparing two investments held for different durations; benchmarking your returns against an index; and calculating the implied CAGR needed to reach a future target.

Use a different tool when you want to project future growth from a starting amount (use the compound interest calculator), or when calculating how much to save each month to hit a target (use the savings goal calculator).

Note: this calculator assumes a lump-sum investment with no additional contributions or withdrawals. For portfolios with ongoing deposits, the internal rate of return (IRR) is a more accurate measure.

Ignoring fees. A fund returning 10% gross with a 1.5% annual fee nets 8.5%. Over 20 years, that difference reduces your final balance by roughly 25%. Always calculate on net-of-fee values.

Ignoring inflation. An 8% nominal return during 3% inflation is only 5% in real purchasing power terms. For long-term planning, subtract the inflation rate from your CAGR to get the real return.

Cherry-picking dates. Starting or ending your measurement at a market peak or trough dramatically distorts CAGR. Use consistent, meaningful dates — anniversary dates or full calendar years.

Confusing return with profit. A 100% return on a $1,000 investment is $1,000 profit. A 10% return on a $100,000 investment is $10,000 profit. Percentage and absolute gain tell different stories.

Example: $10,000 grows to $18,000 over 5 years. Total return = (18,000 − 10,000) ÷ 10,000 × 100 = 80%. CAGR = (18,000 ÷ 10,000)^(1/5) − 1 = 1.8^0.2 − 1 = 12.47% per year.

Why CAGR matters for comparison: Investment A returns 80% over 5 years (12.47% CAGR). Investment B returns 80% over 8 years (7.73% CAGR). Same total return, very different annual performance.

The Rule of 72 check: at 12.47% CAGR, money doubles every 72 ÷ 12.47 = 5.8 years — consistent with our $10k nearly doubling in 5 years.