Calculate percentage return on an investment from initial and final values, with optional annualisation over a holding period. Use it to test different inputs quickly, compare outcomes, and understand the main factors behind the result before moving on to related tools or deeper guidance.
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Result
Total percentage return on the investment.
Investment Analysis
Enter the initial and final value of an investment to calculate total percentage return and absolute gain. Optionally provide the holding period to compute the annualised (CAGR) return.
Percentage return expresses the gain or loss as a fraction of the initial investment. It is the most basic and universal investment performance metric.
Annualising the return (CAGR) enables fair comparison of investments held for different time periods. A 50% return over 3 years is approximately 14.5% annualised.
Total return and optional annualisation. This percentage return calculator formula explanation shows how the entered values flow into the main result and the supporting figures the calculator returns.
Total Return = (Final − Initial) / Initial × 100
Percentage change from initial to final value.
CAGR = ((Final / Initial)^(1/years) − 1) × 100
Compound annual growth rate — the constant annual rate that would produce the same total return over the holding period.
Does not account for cash flows during the holding period (dividends, withdrawals, additional investments). For portfolios with interim cash flows, use the internal rate of return (IRR) or money-weighted return instead.
Frequently asked questions
Total return is the cumulative percentage change over the entire holding period. Annualised return (CAGR) converts this to an equivalent annual rate, enabling comparison across different time horizons.
Only if you include reinvested dividends in the final value. For total return including income, add all dividends received to the final value before calculating.
CAGR accounts for compounding; arithmetic average does not. If an investment returns +50% then −33%, the arithmetic average is +8.5%, but the CAGR is 0% (you ended where you started). CAGR is the more accurate measure.
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