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Read the guideInvestment return analysis guide
Use this calculator to measure total return and annualized return (CAGR). It is best for comparing investments held over different time periods.
Total vs annualized
Total return shows the overall gain, while CAGR normalizes growth per year.
Time matters
Two investments with the same total return can have very different annualized returns.
Include real costs
Use final values that reflect dividends, fees, and taxes if you want a realistic net return.
How to interpret the results
- Compare CAGR for investments with different holding periods.
- Use the simple ROI for a quick sense of total gain.
- Remember that past returns are not guarantees.
Common analysis mistakes
- Ignoring fees, taxes, or reinvested dividends.
- Comparing returns across different risk profiles.
- Assuming a single period represents long-term results.
Choosing benchmarks
- Pick benchmarks that match your asset mix.
- Compare over similar time periods.
- Use multiple benchmarks if your portfolio is diversified.
Investment return calculator FAQ
What is the difference between total return and CAGR?
Total return measures the overall gain or loss. CAGR shows the annualized growth rate over the holding period.
Does this calculator include dividends or fees?
No. Enter a final value that already reflects dividends, fees, or taxes if you want those effects included.
Why does the annualized return differ from the simple return?
Annualized return accounts for the time period and compounding, while simple return is just the total change.
How should I choose benchmark comparisons?
Use benchmarks that match your asset mix, risk level, and timeframe. Historical averages vary and should be used cautiously.