Free Investment Return Calculator 2026 - Calculate Annualized Return & Total Gain
Calculate your investment's annualized rate of return and total gain. Understand portfolio performance and compare different investment strategies.
Note: This calculator determines the annualized rate of return needed to grow your initial investment to your final value over the specified time period.
How to Calculate Investment Return: Complete Guide 2026
What is Investment Return? Investment return measures how much your investment has grown or declined over a specific time period. It's typically expressed as a percentage and can be calculated as total return (overall gain/loss) or annualized return (average per year).
Annualized Return vs Total Return: Total return shows the overall percentage gain or loss from your initial investment. Annualized return (also called compound annual growth rate or CAGR) shows what the average return would be per year if it were constant. Annualized return is more useful for comparing investments over different time periods.
How to Calculate Annualized Return: The formula for annualized return is: ((Final Value / Initial Value)^(1/Years) - 1) × 100. For example, if you invest $50,000 and it grows to $100,000 over 10 years, your annualized return is approximately 7.18% per year.
Understanding Your Investment Performance: Use our calculator to understand how your investments are performing. Compare different investments, time periods, and strategies to make informed investment decisions. A good annualized return depends on your investment type and risk tolerance, but historically, the stock market has averaged around 7-10% annual returns over long periods.
Frequently Asked Questions - Investment Return Calculator
Annualized return is the average rate of return per year that an investment generates over a specific time period. It's calculated using the compound annual growth rate (CAGR) formula, which shows what the return would be if it were constant each year. This makes it easier to compare investments over different time periods.
To calculate investment return, you need your initial investment amount, final value, and the time period. The annualized return is calculated using the formula: ((Final Value / Initial Value)^(1/Years) - 1) × 100. Our calculator does this automatically - just enter your initial investment, final value, and number of years.
A good investment return depends on your investment type, risk tolerance, and time horizon. Historically, the stock market has averaged around 7-10% annual returns over long periods. Bonds typically return 3-5% annually. Higher returns usually come with higher risk. Use our calculator to see how different returns affect your investment growth over time.
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