Why use this calculator
Understanding your actual investment returns helps you evaluate performance and make better decisions. This calculator accounts for both capital appreciation and dividend income to give you a complete picture.
How to use it
Enter your initial investment amount, current or final value, holding period, and any dividends received. The calculator shows both total and annualized returns.
The formula
Total Return = (Final Value + Dividends - Initial) / Initial × 100. Annualized Return = ((Final + Dividends) / Initial)^(1/years) - 1.
Worked examples
$10,000 invested, now worth $15,000 after 5 years with $1,000 in dividends
60% total return, 10.76% annualized return
When people use it
- Evaluating stock performance
- Comparing investment options
- Portfolio performance tracking
Tips
- Always consider annualized returns when comparing investments of different durations
- Include all income (dividends, distributions) for accurate returns
- Account for inflation to understand real purchasing power gains
Questions people ask
- What's the difference between total and annualized return?
- Total return is the overall percentage gain/loss. Annualized return adjusts this to a per-year basis, making it easier to compare investments held for different time periods.