Annualized Return Calculator
Example: $10,000 → $15,000 in 3 years = 14.5% annual return
Measure your investment performance with this annualized return calculator. Enter your initial investment and current value to see your total return, annualized rate of return (CAGR), ROI, and how your investment has grown over time.
Initial vs current value
Return on Initial
Gain as % of initial investment only
Annualized Return (CAGR)
Compound annual growth rate
Total Gain/Loss
ROI on Total Invested
Gain as % of all money invested
How We Calculate This
CAGR is calculated as: (Ending Value / Beginning Value)^(1/years) - 1. For investments with additional contributions, we use a modified calculation that accounts for the timing of cash flows.
Methodology last reviewed: August 2023. How SparkCalc works
Sources: U.S. SEC (Investor.gov): Compound Interest Calculator
Frequently Asked Questions
What is CAGR?
CAGR (Compound Annual Growth Rate) is the rate at which an investment would have grown if it grew at a steady rate annually. It smooths out volatility to give you a single annualized return figure.
How is total return different from CAGR?
Total return is the overall percentage gain from start to finish. CAGR spreads that return evenly across each year. A 50% total return over 5 years equals an 8.4% CAGR.
What is a good investment return?
The S&P 500 has averaged about 10% annually before inflation (7% after). Beating this benchmark consistently is considered excellent. Returns vary by asset class and risk level.
Should I include dividends in my return?
Yes! Total return should include dividends. Many investors underestimate their returns by only looking at price appreciation and ignoring dividend income.
Related Calculators
You might also find these calculators helpful: Compound Interest Calculator, and Retirement Calculator.
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This calculator provides estimates only. Actual results may vary. Consult a qualified financial advisor before making financial decisions.