Investment Return Calculator
Calculate the return on your investments and analyze your portfolio performance. See your total return, annualized return (CAGR), and compare against market benchmarks.
Investment Return Calculator
Calculate the return on your investments and compare performance.
Investment Return Calculator
Investment Return Results
Investment Return Analysis
Your investment has decreased at an annualized rate of 0.00% over 5 years. This means your initial investment of $10,000.00 has decreased to $20,000.00, resulting in a total loss of $0.00.
How does this return compare?
- • Your annualized return is positive but below typical stock market returns
- • Average inflation rate: ~2-3% annually (reduces real returns)
How to Use This Calculator
This calculator helps you make informed financial decisions by providing accurate estimates based on the information you provide. Follow these steps:
Enter Your Details
Fill in all required fields with your financial information.
Adjust Parameters
Use sliders and toggles to customize scenarios and assumptions.
View Results
Get instant calculations that update as you change inputs.
Compare Options
Try different scenarios to find the best financial solution.
Understanding Investment Returns
Calculating investment returns is essential for evaluating your portfolio performance and making informed decisions about your investments. Different metrics provide different insights into how your investments are performing.
Key Investment Return Metrics
When analyzing investment performance, consider these important metrics:
- Total Return: The overall percentage gain or loss on your investment
- Annualized Return (CAGR): The compound annual growth rate, which smooths out returns over time
- Absolute Gain: The actual dollar amount gained or lost
- Risk-Adjusted Return: Return relative to the level of risk taken
- Real Return: Return after accounting for inflation
Comparing Investment Returns
To effectively evaluate your investment performance, compare your returns against appropriate benchmarks:
- Market indices: S&P 500, Dow Jones, NASDAQ for stock investments
- Industry averages: Returns specific to real estate, bonds, or alternative investments
- Risk-free rate: Treasury bills or high-yield savings accounts
- Inflation rate: To ensure your investments are growing in real terms
- Your investment goals: The return needed to meet your financial objectives
Factors Affecting Investment Returns
Many factors can impact your investment returns:
- Time horizon: Longer investment periods often smooth out volatility
- Asset allocation: The mix of stocks, bonds, and other assets in your portfolio
- Fees and expenses: Investment costs directly reduce your returns
- Tax considerations: Different investments have different tax treatments
- Market conditions: Economic cycles, interest rates, and market sentiment
Use our investment return calculator to analyze your investments and make more informed decisions about your portfolio. Remember that past performance doesn't guarantee future results, and all investments involve some level of risk.