Rate of Return Calculator

Calculate investment returns with comprehensive analysis. Analyze simple returns, CAGR, real returns, and investment performance metrics.

✓ Simple Returns ✓ CAGR Analysis ✓ Performance Metrics

Rate of Return Calculator

Calculation Type

Investment Values

Starting investment amount

Ending investment value

Income received during period

Time & Analysis

Investment holding period

Annual inflation rate

Return Formulas

Investment return calculations

Formulas:

Simple: (End - Begin + Income) / Begin
CAGR: (End / Begin)^(1/years) - 1
Where End = final value, Begin = initial value

Quick Examples

Stock Investment
$10k → $12.5k + $500 dividends
Long-term CAGR
$10k → $16k over 5 years
Portfolio Analysis
Diversified investment returns

Return Benchmarks

S&P 500: ~10% historical average
Bonds: 3-6% typical range
Real Estate: 8-12% including appreciation
Inflation: ~2-3% long-term average

Return Types

📈 Total Return: Capital gains + income
📊 CAGR: Compound annual growth rate
💰 Real Return: Adjusted for inflation
🎯 Risk-Adjusted: Return per unit of risk
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Understanding Returns

Rate of return measures the gain or loss on an investment over a specified period, expressed as a percentage of the initial investment cost.

  • Total Return: Includes both capital appreciation and income
  • Annualized Return: Return expressed on a yearly basis
  • Real Return: Return adjusted for inflation effects
  • Risk-Adjusted Return: Return considering investment risk

Return Applications

Investment Analysis

Compare performance of different investments and strategies.

Portfolio Management

Evaluate overall portfolio performance and allocation.

Financial Planning

Set realistic expectations for long-term financial goals.

Performance Tracking

Monitor investment progress and make informed decisions.