Investment Return Calculator
Work out the total and annualized return on an investment from what you put in and what it is now worth, including additional contributions, withdrawals, fees and taxes.
Written and reviewed by the CalcBundle editorial team. Transparent formulas · results are estimates, not advice.
Total return
Enter an initial investment and a final value greater than zero.
How investment return is calculated
Return measures how much an investment earned relative to what you put in. The headline figure is the total return; the annualized return turns that into a comparable per-year rate.
- Total return % = (net final value − total invested) ÷ total invested × 100
- Annualized return = (net final value ÷ total invested)1/years − 1
Total return vs annualized return
A 50% total return sounds identical whether it took two years or ten, but the annualized rates are very different (about 22% vs 4% per year). Annualizing is what lets you compare investments fairly — the same idea behind the CAGR calculator.
Why contributions matter
When you add money over time, a true performance figure is a money-weighted return (IRR), which needs the date of every cash flow. This tool keeps things honest: with contributions it labels the annualized number an approximation rather than pretending a simple CAGR is an exact IRR. For a single trade, use the stock profit calculator; for income, the dividend calculator.
Example
Invest $10,000 and end with $12,000 — a 20% total return. Over five years with no contributions, that is about a 3.7% annualized return.
Frequently asked questions
How is investment return calculated?
Total return is your gain divided by the total amount invested, as a percentage: (final value − total invested) ÷ total invested × 100. Total invested includes your initial amount plus any additional contributions.
What is the difference between total and annualized return?
Total return is the overall percentage gain across the whole period. Annualized return expresses that as a compounded yearly rate (CAGR), which makes investments of different lengths comparable.
Why do contributions affect the return calculation?
Money added part-way through has less time to grow than the initial amount, so a simple return that lumps all contributions together can understate performance. This calculator flags the annualized figure as an approximation when contributions are present, rather than presenting it as an exact IRR.
Does it account for fees and taxes?
Yes. Optional fees and taxes are subtracted, and withdrawals are added back, to give a net final value before the return is calculated.
Related calculators
Compound Interest
Project growth from an initial amount, rate, compounding and regular contributions.
CAGR
Compute compound annual growth rate, or solve for value or years.
Stock Profit
Calculate profit or loss from buying and selling shares, with fees.
Dividend
Estimate dividend income and reinvestment growth from shares or yield.
Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Investment returns are not guaranteed. This calculator is for educational and planning purposes only.