How do I calculate investment return?

Total Return % = ((Final Value - Initial Investment + Dividends) / Initial Investment) × 100. For $10,000 growing to $12,500 with $500 in dividends: ((12,500 - 10,000 + 500) / 10,000) × 100 = 30% total return.

What is the difference between total return and annualized return?

Total return is the cumulative gain over the entire period. Annualized return is the average yearly return, useful for comparing investments of different durations. A 30% total return over 3 years is approximately 9.14% annualized.

Should I include dividends in my return calculation?

Yes, always include dividends for accurate total return. Dividends can represent a significant portion of returns, especially for income-focused investments. Excluding them understates your true performance.

What is a good investment return?

Historical stock market average is 10% annually. 7-8% after inflation is solid long-term. "Good" depends on asset class, risk level, and time period. Compare against relevant benchmarks like S&P 500.

Investment Return Calculator

Calculate investment returns including capital gains, dividends, and total return percentage. Track portfolio performance over time.

Calculate

Initial Investment ($)

Final Value ($)

Dividends ($)

Formula

Total Return % = ((Final Value - Initial Investment + Dividends) / Initial Investment) × 100

Example

initial Investment:10000

final Value:12500

dividends:500

total Return:30

annualized Return:8.45

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