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📈 Investment Return Calculator

Calculate your investment's total return, compound annual growth rate (CAGR), and inflation-adjusted real return. Enter your initial and final values to instantly see how your investment performed.

Return Formulas

Total Return (%) = (Final − Initial) ÷ Initial × 100
CAGR = (Final ÷ Initial)^(1 ÷ years) − 1
Real CAGR = ((1 + CAGR) ÷ (1 + inflation)) − 1

Real-World Example

$10,000 invested, grows to $28,000 over 10 years:

Total Return = (28,000 − 10,000) / 10,000 × 100 = 180%
CAGR = (28,000 / 10,000)^(1/10) − 1 = 10.8%/year
Absolute Gain = $18,000

Steps to Calculate Investment Return

  1. Enter the amount you originally invested.
  2. Enter the current or final value of your investment.
  3. Enter the number of years the investment was held.
  4. Optionally add annual contributions and an inflation rate for a real return view.
  5. Click Calculate to see your CAGR, total return, and absolute gain.

Frequently Asked Questions

CAGR (Compound Annual Growth Rate) is the annualized rate at which an investment grows from its beginning to ending value, assuming profits are reinvested at the end of each year. It smooths out volatility to give a single representative annual growth figure.

The US stock market (S&P 500) has historically averaged about 10% annual return over long periods, though this varies significantly year to year. Individual stocks, alternative assets, and international markets have different return profiles. Past performance does not guarantee future results.

Inflation reduces your real purchasing power. A 10% nominal return with 3% inflation gives you only about 6.8% in real terms. When evaluating long-term investments, always consider inflation-adjusted (real) returns to understand the true growth in your purchasing power.

Total return is the overall percentage gain or loss over the entire investment period. CAGR breaks that total return into an annualized equivalent rate, making it easy to compare investments held for different lengths of time.

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