Investment Return Calculator

Project your portfolio growth, compare scenarios, and understand the breakdown of your investment returns

Final Portfolio Value
$453K
after 20 years
Total Contributions
$130K
$10,000 initial + $500/mo
Total Returns
$323K
248% return on contributions
Annualized Return
21.0%
CAGR on initial investment
Investment Details
$10,000
$500
8%
%
20 yrs
yrs
2%
%
15%
%
Returns Breakdown
Total contributions$130,000
Capital gains$258,372
Dividends earned$64,593
Pre-tax portfolio value$452,965
Estimated tax on gains (15%)-$48,445
After-tax value$404,520
Scenario Comparison
Pessimistic(6.0%)
$343,778
Expected(8.0%)
$452,965
Optimistic(10.0%)
$603,553
Range spread$259,775
Portfolio Growth Over Time
Portfolio Value
Contributions
Year-by-Year Breakdown
YearStartingContributionsReturnsEnding
1$10,000$6,000$1,330$17,330
2$17,330$6,000$2,097$25,427
3$25,427$6,000$2,945$34,373
4$34,373$6,000$3,882$44,255
5$44,255$6,000$4,917$55,172
6$55,172$6,000$6,060$67,232
7$67,232$6,000$7,323$80,554
8$80,554$6,000$8,718$95,272
9$95,272$6,000$10,259$111,531
10$111,531$6,000$11,962$129,493
11$129,493$6,000$13,842$149,335
12$149,335$6,000$15,920$171,255
13$171,255$6,000$18,215$195,471
14$195,471$6,000$20,751$222,222
15$222,222$6,000$23,552$251,774
16$251,774$6,000$26,647$284,421
17$284,421$6,000$30,065$320,487
18$320,487$6,000$33,842$360,329
19$360,329$6,000$38,014$404,342
20$404,342$6,000$42,623$452,965

How the Investment Return Calculator works

This calculator measures how an investment actually performed: the total return over the holding period and the compound annual growth rate (CAGR), which restates that performance as a steady per-year rate. CAGR is the honest way to compare investments held for different lengths of time.

Total return alone can flatter or mislead — 60% sounds great until you learn it took 15 years (3.2% annually). Annualizing puts every investment on the same footing.

The formula
CAGR = (Ending value ÷ Beginning value)^(1/t) − 1
  • CAGR — compound annual growth rate
  • t — holding period in years

Tips to get the most out of it

  • Include dividends and distributions in the ending value — ignoring them understates stock returns substantially.
  • Compare your CAGR against an index fund benchmark over the same period to judge whether active choices added value.
  • Remember taxes and fees: the return you keep is what matters.

Frequently asked questions

What's the difference between CAGR and average annual return?

The arithmetic average overstates performance when returns vary. Gain 50% then lose 50%, and the "average" is 0% — but you're actually down 25%. CAGR reflects the real compounded outcome, which is why professionals quote it.

What is a good annual return?

Context matters: the U.S. stock market has averaged roughly 10% nominal (about 7% after inflation) over the long run, bonds meaningfully less. Beating a comparable index consistently is hard — matching it cheaply is a genuinely good outcome.

Do dividends count as part of my return?

Absolutely. Dividends and their reinvestment have historically contributed a large share of total stock market returns. Always compare total return (price change plus distributions), not just price charts.

How do I account for money I added along the way?

Simple CAGR assumes one starting amount. With ongoing contributions, the right measures are money-weighted (IRR) or time-weighted returns. As a quick approximation, run this calculator on each contribution separately or use your brokerage's performance reporting.

From the Knowledge Base

CAGR vs Average Return: The Right Way to Measure Investment Performance

Gain 50%, lose 50%, and your 'average return' is zero — while you're actually down 25%. Why CAGR is the honest metric, and how to compute yours.

Read the guide