📈 Investment Return Calculator
Calculate your investment returns with precision. Track ROI, CAGR, total gains, and compare different investments side by side.
Calculate your investment returns with precision. Track ROI, CAGR, total gains, and compare different investments side by side.
Compound Annual Growth Rate shows the smoothed annual rate of return.
?? At this CAGR, $10,000 invested today would grow to:
$24,883 in 5 years
Investment A grew faster on an annual basis (15.83% vs 14.02%), making it the better performer despite Investment B having higher total returns.
Measuring investment performance correctly is crucial for making informed financial decisions. Different metrics tell different stories about your investments.
The complete percentage gain or loss including dividends:
Total Return = ((Final Value - Initial Value + Dividends) / Initial Value) × 100
The smoothed annual return assuming compound growth:
CAGR = ((Ending Value / Beginning Value) ^ (1 / Years)) - 1
CAGR is the gold standard for comparing investments because it accounts for time. A 50% return in 2 years is better than a 50% return in 5 years. CAGR normalizes returns to an annual basis, making apples-to-apples comparisons possible.
| Investment Type | Historical CAGR | Risk Level |
|---|---|---|
| S&P 500 (1957-2024) | 10.5% | Medium-High |
| Total US Stock Market | 10.2% | Medium-High |
| Investment-Grade Bonds | 5.5% | Low-Medium |
| Real Estate (REITs) | 9.5% | Medium |
| Treasury Bills | 3.3% | Very Low |
| Inflation (1926-2024) | 2.9% | N/A |
Historically, staying invested beats trying to time the market. Long-term investors have recovered from every crash.
Spread investments across asset classes to reduce risk. Don't put all eggs in one basket.
Invest fixed amounts regularly regardless of price. This reduces the impact of volatility.
Periodically adjust your portfolio back to target allocations. Sell high, buy low automatically.
High expense ratios compound against you. A 1% fee can cost you 25%+ over 30 years.
Use tax-advantaged accounts (401k, IRA). Hold investments over 1 year for lower capital gains rates.
These figures represent average annualized total returns (including dividends/income) for major asset classes over the 30-year period 1994×2024, based on major index performance data:
| Asset Class | 30-Year Annualized | $10K grew to (30 yrs) | Worst Single Year | Risk Level |
|---|---|---|---|---|
| S&P 500 (US Large Cap) | 10.7% | $204,000 | -38.5% (2008) | Medium-High |
| US Small Cap Stocks | 11.2% | $228,000 | -36.7% (2008) | High |
| International Developed (EAFE) | 5.1% | $44,500 | -43.1% (2008) | High |
| US REITs (Real Estate) | 9.6% | $160,000 | -37.1% (2008) | Medium-High |
| US Bonds (Aggregate) | 4.5% | $37,000 | -13.0% (2022) | Low-Medium |
| Gold | 5.8% | $54,500 | -28.3% (2013) | Medium |
| Cash (3-Month T-Bills) | 2.1% | $18,500 | N/A | Very Low |