Investment Return
Calculator

Inputs

Investment gain
$2,500.00

Results

Investment gain
$2,500.00
Simple return on investment
20.833333%

Comparison

ScenarioAmount
Net cash invested$11,500.00
Ending value$14,000.00

Investment return reconciliation

Initial investment10,000.00
Contributions2,000.00
Withdrawals-500.00
Ending value14,000.00
Investment gain2,500.00

Formula

G = E + W − I − C; ROI = G ÷ (I + C) × 100
E
14000.00
W
500.00
I
10000.00
C
2000.00

= 20.833333%

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Frequently asked questions

What is the difference between total return and annualized return?+

Total return is the overall percentage gain or loss over the entire holding period, while annualized return converts that into an equivalent yearly rate, which makes it possible to fairly compare investments held for different lengths of time.

Does the calculated return include dividends or interest received?+

Only if you include them in the ending value or as separate cash flows; a return calculated purely from price change alone will understate the real return for any investment that also paid income along the way.

Why is my annualized return lower than my total return?+

Annualizing spreads the total gain across the number of years held, so for holding periods longer than one year, the annual rate will naturally be smaller than the cumulative total, even though the dollar profit is the same.

How does this calculator handle a loss instead of a gain?+

A negative return is calculated exactly the same way, just with the ending value below the starting value, producing a negative percentage that reflects the actual loss over the period entered.

Should I compare my investment return to inflation?+

Yes, comparing your nominal return to the inflation rate over the same period tells you your real return, which is what actually matters for growing purchasing power rather than just the account balance.