📈 Investment Return & CAGR Calculator

Use this investment return and CAGR calculator to see how your money has grown over time. Enter your starting amount, ending balance, holding period, and optional contributions to estimate total return and your approximate compound annual growth rate (CAGR).

Investment return and CAGR results

Enter your starting investment, ending value, holding period, and any additional contributions, then select Calculate Investment Return & CAGR to see your total return and approximate annual growth rate.

Investment return breakdown for your inputs

After you calculate your investment results, this section will show a detailed breakdown of the total invested, profit or loss, total return, and approximate CAGR based on your inputs.

Investment return calculator inputs and key terms

These inputs and definitions help you interpret how your investment has performed over time and how total return differs from your annual growth rate.

• Initial investment amount: The amount of money you invested at the beginning of the period. This might be the lump sum you deposited when you first bought the investment.
• Additional contributions: Any extra money you added to the investment over the period, such as recurring deposits or top-ups. The calculator combines these with your initial investment to measure total dollars invested.
• Ending value: The current or ending balance of the investment at the end of the period, including reinvested dividends or interest if they remain in the account.
• Holding period (years): The length of time between when you started investing and the point at which you’re measuring the return. The calculator uses this period to annualize your growth for the CAGR estimate.
• Total invested: The sum of your initial investment and any additional contributions made during the period. This is the total amount of your own money that went into the investment.
• Profit or loss: The difference between your ending value and the total amount you invested. A positive number represents a gain; a negative number represents a loss.
• Total return: The percentage gain or loss relative to the total amount you invested: (ending value − total invested) ÷ total invested.
• CAGR (compound annual growth rate): A smoothed rate of return that describes what constant yearly growth rate would turn your starting balance into your ending balance over the period. It’s useful for comparing investments with different time frames.
• Average profit per year: A simple average showing total profit or loss divided by the number of years. This is not the same as CAGR but can help you think about gains or losses in yearly dollar terms.
• Fees, taxes, and inflation: This calculator reports nominal returns only. It does not automatically adjust for investment fees, taxes, or changes in purchasing power due to inflation.

Formulas used in the Investment Return & CAGR Calculator

This calculator uses standard investment performance formulas to show your total return, profit or loss, and approximate compound annual growth rate based on the information you enter.

Total invested, profit, and total return

Let:
I = initial investment amount
C = additional contributions over the period
V = ending value of the investment
T = total invested = I + C
Profit or loss is:
Profit = V − T
Total return (as a decimal) is:
Total return = Profit ÷ T
As a percentage:
Total return % = Total return × 100%

Compound annual growth rate (CAGR)

Let:
n = number of years in the holding period
For a simple CAGR calculation based on starting and ending balances:
CAGR (decimal) = (V ÷ I)1 ÷ n − 1
As a percentage per year:
CAGR % = CAGR (decimal) × 100%
This formula works best when there are no additional contributions or withdrawals. When you add or remove money over time, more advanced methods like money-weighted or time-weighted returns give a more precise picture but require transaction-level data.

Average profit per year

Average profit per year is simply:
Average profit per year = Profit ÷ n
This isn’t a growth rate, but a way to understand your gain or loss in terms of dollars per year.

Real-world investment performance can be affected by contributions, withdrawals, trading costs, management fees, taxes, and inflation. This calculator provides a streamlined summary, so you may see slightly different results in brokerage statements that use more detailed methods.

Investment Return & CAGR Calculator FAQs

• What is the difference between total return and CAGR?
  Total return shows your overall gain or loss as a percentage of the total amount you invested. It does not care how long the investment was held. CAGR, on the other hand, shows the smoothed annual growth rate that would turn your starting balance into your ending balance over the holding period. It’s helpful for comparing investments with different time frames.
• How should I choose the holding period for this calculator?
  Use the time between when you first invested the initial amount and the date you are measuring the ending value. If you held the investment for 3 years and 6 months, you could enter 3.5 as the number of years. The holding period is important for calculating an accurate CAGR.
• How do additional contributions affect the results?
  Additional contributions increase the total amount you have invested, which affects your profit and total return. This calculator still uses the standard CAGR formula based on your starting balance and ending value, so the CAGR is an approximation when you add money over time. For detailed performance that accounts for the timing of each contribution, you would need a money-weighted or time-weighted return calculation.
• Can this calculator handle negative investment returns?
  Yes. If your ending value is lower than the total amount invested, the calculator will show a negative profit and a negative total return. CAGR may be negative as well when your ending balance is below your initial investment. This can help you quantify how much an investment has lost value over the period.
• Does this calculator adjust for fees, taxes, or inflation?
  No. The results are nominal, meaning they do not automatically adjust for advisory fees, trading costs, account fees, taxes, or changes in purchasing power due to inflation. If you want to understand your real, after-fee or after-tax returns, you would need to subtract those amounts separately from your ending value or account for them in your inputs.
• Is this calculator a substitute for professional investment advice?
  No. This tool is designed for education and planning only. It can help you understand how your investments have performed, but it cannot tell you which investments are appropriate for your goals, risk tolerance, or time horizon. For personalized guidance, it’s a good idea to speak with a licensed financial professional.