Personal Finance
Investment Return Calculator
Did that investment beat the market? Convert start and end values into total return and annualized growth.
Investment return measures how much an investment gained, as a percentage: (ending value − starting value) ÷ starting value × 100. Annualized return (CAGR) smooths this over multiple years for fair comparison. Figures are estimates before taxes and fees — verify details with a licensed advisor where needed.
ROI: gain ÷ cost × 100.
CAGR: annualized rate.
Compare against ~7–10% market average.
Calculate Your Investment Return
Total Return
What Is Investment Return?
Return on investment (ROI) expresses a gain as a percentage of the cost. It's the first question for any investment: did it work?
CAGR (compound annual growth rate) converts that total into a steady annual rate, so a 5-year holding and a 20-year holding can be compared fairly.
How It Is Calculated
ROI% = (end − start) ÷ start × 100
CAGR = (end ÷ start)^(1/years) − 1
Example: Example: $10,000 → $18,000 over 5 years = +80% total, ≈ +12.5%/yr CAGR
Benchmark returns (long-run, nominal)
| Asset | ~Annual return |
|---|---|
| S&P 500 (100 yrs) | ~10% |
| US bonds | ~5% |
| Cash | ~3% |
| Gold | ~2% real, volatile |
Limitations
- Ignores taxes, fees, and inflation.
- Contributions and withdrawals mid-period distort simple CAGR.
- Past performance ≠ future returns.
Sources & Review
References used for this calculator’s formulas and thresholds:
Investment Return FAQ
What is a good investment return?
Long-run stock averages are ~7–10% nominal. Beating that consistently is rare even for professionals.
What is the difference between ROI and CAGR?
ROI is the total gain in percent; CAGR is the annualized rate that would produce it, making different periods comparable.
Should I include dividends in return?
Yes — total return (price change + dividends reinvested) is the honest measure.
What return do I need to double my money?
The Rule of 72: divide 72 by the annual return. At 7%, doubling takes ≈ 10 years.
Important disclaimer: Results are educational estimates, not a substitute for professional advice. Review your numbers with a qualified advisor before acting on them.