Investment Return Calculator
Calculate total return and annualized return on any investment.
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This calculator supports two modes. Pick the one that matches your question:
- Calculate Return. Use this mode when you know what you invested and what it is worth now (or what you sold it for). Enter your initial investment, the final value, and the number of years you held the investment. The calculator shows your total return as a percentage and dollar amount, plus the annualized return (CAGR), which tells you the equivalent yearly growth rate.
- Project Growth. Use this mode to see how much an investment could be worth in the future. Enter your starting amount, the annual return you expect, and the number of years. The calculator shows the projected future value.
Results update instantly as you type. Use the Share button to send a pre-filled link, or Copy to grab the result.
About Investment Returns
Total return measures the overall gain or loss on an investment as a percentage of the original amount. If you invested $10,000 and it grew to $25,000, your total return is 150%. However, total return does not tell you how fast the investment grew. That is where annualized return comes in.
Annualized return (also called CAGR, or Compound Annual Growth Rate) converts any multi-year return into an equivalent yearly rate. It accounts for compounding, making it easy to compare investments held for different time periods. A $10,000 investment that becomes $25,000 over 5 years has a CAGR of about 20.1% per year.
All calculations run entirely in your browser. We never see or store your financial data.
Frequently Asked Questions
What is annualized return?
Annualized return, also known as CAGR (Compound Annual Growth Rate), is the rate at which an investment would have grown if it increased at a steady rate every year. It smooths out year-to-year volatility into a single comparable number. The formula is ((Final Value / Initial Value) ^ (1 / Years)) - 1. This makes it easy to compare investments held for different lengths of time.
How is total return different from annualized return?
Total return is the overall percentage gain or loss over the entire holding period. Annualized return converts that total into a per-year rate that accounts for compounding. For example, a 100% total return over 10 years is an annualized return of about 7.2%. A 100% total return over 3 years is an annualized return of about 26%. Total return tells you the end result. Annualized return tells you the pace.
What is a good annual return on investment?
It depends on the asset class and risk level. The S&P 500 has historically averaged about 10% per year before inflation (roughly 7% after inflation). Bonds typically return 3-6%. Real estate averages vary widely by market but often fall in the 8-12% range including appreciation and rental income. A "good" return is one that meets your financial goals while staying within your risk tolerance.
Does this calculator account for fees and taxes?
No. This calculator shows raw investment return before fees, taxes, and inflation. In practice, management fees (typically 0.03% to 1%+ annually), capital gains taxes, and inflation all reduce your real return. For a more accurate picture, subtract your estimated annual fee percentage from the return rate, or enter your after-fee values directly.