Rate of Return Calculator

Calculate your investment’s total return, annualized return, profit, and ending gain percentage based on starting value, ending value, additional contributions, withdrawals, and time held.

Results

Profit / Gain
$0
Total Return
0%
Annualized Return
0%
Net Invested Amount
$0
Inflation-Adjusted Annual Return
0%
Holding Period (Years)
0

Enter your values and click Calculate to estimate your rate of return.

How this rate of return calculator works

This rate of return calculator measures how much an investment or asset changed in value over time. It compares your starting value to your ending value while also accounting for additional contributions and withdrawals.

The calculator shows total return, annualized return, profit or gain, and an inflation-adjusted annual return estimate. This helps you compare performance across different investments and time periods.

What to enter

  • Your starting value or original investment amount
  • Your ending value
  • Any additional money added during the period
  • Any withdrawals taken during the period
  • The length of time you held the investment
  • An inflation estimate

What the results mean

  • Profit / Gain: dollar gain after adjusting for contributions and withdrawals
  • Total Return: total percentage return over the full holding period
  • Annualized Return: average yearly return rate over time
  • Net Invested Amount: starting value plus contributions minus withdrawals
  • Inflation-Adjusted Annual Return: estimated real annual return after inflation

Rate of return calculator formula

A simplified total return formula is:

Total Return = (Profit / Net Invested Amount) × 100

Where:

Annualized return is estimated using:

Annualized Return = [(Ending Economic Value / Total Invested Basis)1 / Years - 1] × 100

This is a simplified planning method and does not calculate precise money-weighted return timing.

Tips for using a rate of return calculator

Use annualized return for comparisons

Annualized return can help compare investments held for different lengths of time on a more equal basis.

Account for cash flows

Contributions and withdrawals can affect your return picture, so include them whenever possible for a more realistic result.

Understand simplified calculations

This calculator gives a useful estimate, but highly precise performance analysis may require exact cash-flow timing and a money-weighted return method.

Check real return after inflation

Inflation reduces purchasing power, so an inflation-adjusted return can give a more realistic sense of performance.

Frequently asked questions

What is rate of return?

Rate of return is the percentage gain or loss on an investment over a given period of time.

What is the difference between total return and annualized return?

Total return measures the overall gain across the full period, while annualized return estimates the average yearly growth rate.

Does this calculator account for exact cash-flow timing?

No. This version uses a simplified method for general planning. It does not calculate an exact internal rate of return or money-weighted return.

Can I use this for stocks, real estate, or business investments?

Yes. This calculator can be used for many types of investments or assets as long as you can estimate the starting value, ending value, and cash flows.

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