Investment Return Calculator
Measure your investment performance with this calculator. Enter your initial investment and current value to see your total return, annualized return (CAGR), and how your investment has grown over time.
How We Calculate This
CAGR is calculated as: (Ending Value / Beginning Value)^(1/years) - 1. For investments with additional contributions, we use a modified calculation that accounts for the timing of cash flows.
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) is the rate at which an investment would have grown if it grew at a steady rate annually. It smooths out volatility to give you a single annualized return figure.
How is total return different from CAGR?
Total return is the overall percentage gain from start to finish. CAGR spreads that return evenly across each year. A 50% total return over 5 years equals an 8.4% CAGR.
What is a good investment return?
The S&P 500 has averaged about 10% annually before inflation (7% after). Beating this benchmark consistently is considered excellent. Returns vary by asset class and risk level.
Should I include dividends in my return?
Yes! Total return should include dividends. Many investors underestimate their returns by only looking at price appreciation and ignoring dividend income.
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