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Investment Return Calculator - ROI Calculator

Free investment return calculator to calculate ROI, total return, and annualized return on your investments. Works for stocks, funds, real estate, and any investment.

Investment Return Calculator

Calculate your investment's total and annualized return

$

The amount you originally invested.

$

The current or ending value of your investment.

years

How long you've held the investment.

$

Total dividends or distributions received during holding period.

Your Returns

Enter your values to see results

and click the "Calculate" button

What is Investment Return?

Investment return measures how much money you've made (or lost) on an investment. It can be expressed as a dollar amount or percentage. The annualized return (also called CAGR - Compound Annual Growth Rate) shows your average yearly return, which is useful for comparing investments held for different time periods. This calculator accounts for both capital gains and dividends/distributions.

How to Use This Calculator

  1. Enter your initial investment amount
  2. Enter the current or final value
  3. Enter how many years you've held it
  4. Add any dividends received (optional)
  5. Click Calculate to see your returns

Return Formulas

Total Return % = (Final - Initial + Dividends) / Initial × 100

Annualized Return (CAGR) = ((Final + Dividends) / Initial)^(1/years) - 1. CAGR gives you the smoothed annual return as if growth was constant each year.

Frequently Asked Questions

What's the difference between total return and annualized return?
Total return is your overall profit/loss percentage. Annualized return (CAGR) is the equivalent constant yearly return. Example: 50% total return over 5 years = 8.45% annualized. Use annualized to compare investments with different holding periods.
Why include dividends in return calculation?
Dividends are part of your total return. A stock might be flat in price but pay 3% dividends yearly. Ignoring dividends understates your true return. Always include all distributions for accurate measurement.
What's a good investment return?
Historically, the S&P 500 averages about 10% annually (7% after inflation). Beating the market consistently is difficult. 7-10% is a reasonable long-term expectation for diversified stock investments.
How is CAGR different from average return?
CAGR accounts for compounding; simple average doesn't. Example: +50% year 1, -50% year 2. Simple average: 0%. But you actually lost money (100→150→75). CAGR correctly shows -13.4% annually.
Does this include fees and taxes?
No, this calculates gross returns. Your actual return is lower after fees (expense ratios, trading costs) and taxes (capital gains, dividends). Consider these when evaluating true performance.
How do I calculate return for multiple investments?
For a portfolio: add up total invested and total current value across all investments, then calculate. Or calculate each separately and weight by size. For accurate portfolio tracking, use dedicated portfolio software.

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