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Finance Calc Kit
Investments

Percentage Return Calculator

Calculate total percentage return, total profit or loss ($), and annualized return (CAGR) on any investment over time.

Investment details

$
$
$
years

Total percentage return

50.00%

Net profit: $500.00 over 3 years

Annualized return (CAGR)

14.47%

Compound annual growth rate

Return multiple

1.50x

$1,000.00 to $1,500.00

Total ending value

$1,500.00

Final value plus dividends

Net profit or loss

$500.00

Total gain

Principal vs gain

Total ending value$1,500.00
  • Initial Principal$1,000.0066.7%
  • Total Gain$500.0033.3%

How this is calculated

Total Return%=Vf+D−ViVi×100\text{Total Return}\% = \frac{V_f + D - V_i}{V_i} \times 100
CAGR=(Vf+DVi)1n−1\text{CAGR} = \left(\frac{V_f + D}{V_i}\right)^{\frac{1}{n}} - 1

Where V_i is the initial investment, V_f is the final market value, D is dividends or income received, and n is the holding period in years.

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How to calculate percentage return and annualized CAGR

Percentage return measures how much an investment gained or lost over a holding period, expressed as a percentage of the initial capital. When you also know how long you held the asset, you can annualize that result into a compound annual growth rate (CAGR) that smooths year-to-year volatility into a single yearly figure.

This calculator is useful when you know your starting balance, ending market value, any dividends or income received, and the number of years invested. For a deeper breakdown of capital gains versus income distributions, use the holding period return calculator. To project forward from a target CAGR instead of analyzing past performance, try the CAGR calculator.

Total percentage return formula

Total return includes both price appreciation and cash income such as dividends or interest. The holding period return formula is:

Total Return%=Vf+D−ViVi×100\text{Total Return}\% = \frac{V_f + D - V_i}{V_i} \times 100

Where ViV_i is the initial investment, VfV_f is the final market value, and DD is dividends or other income received during the holding period.

Annualized return (CAGR) formula

CAGR converts a multi-year total return into an equivalent constant annual rate, assuming profits were reinvested:

CAGR=(Vf+DVi)1n−1\text{CAGR} = \left(\frac{V_f + D}{V_i}\right)^{\frac{1}{n}} - 1

Here nn is the holding period in years. CAGR is also called the geometric mean return and is the standard way to compare investments held for different lengths of time.

Worked example

Suppose you invested $1,000, the position grew to $1,500 after three years, and you received no dividends.

  1. Total return: ($1,500 - $1,000) / $1,000 × 100 = 50%
  2. CAGR: ($1,500 / $1,000)^(1/3) - 1 ≈ 14.47% per year

The 50% total return and 14.47% CAGR describe the same investment from two perspectives: one shows the full gain over three years, the other expresses it as an annualized rate.

When to use total return vs CAGR

  • Total percentage return answers: how much did I make overall on this trade or position?
  • CAGR answers: what steady yearly rate would have produced the same ending value?
  • Use CAGR to compare a 3-year stock holding against a 7-year bond fund or a 10-year index fund.

Frequently asked questions

Does percentage return include dividends?
Yes. Enter dividends or other cash income in the income field. Total return uses final market value plus dividends minus your initial investment.
What is the difference between total return and CAGR?
Total return is the full percentage gain or loss over the entire holding period. CAGR annualizes that result into an equivalent yearly compound rate, making it easier to compare investments held for different durations.
Can CAGR be negative?
Yes. If your ending value plus dividends is less than your initial investment, both total return and CAGR will be negative, indicating a net loss.
Why does CAGR differ from a simple average of yearly returns?
CAGR uses geometric compounding, which accounts for volatility drag. A simple arithmetic average of yearly returns can overstate performance when returns fluctuate, especially after large losses.
What holding period should I enter?
Enter the number of years you held the investment. Fractional years are supported, such as 2.5 for a 30-month holding period.
Are my inputs saved on a server?
No. All calculations run locally in your browser. Changing inputs updates the page URL so you can bookmark or share a specific scenario.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.