Investment Return Calculator
Project investment growth with a year-by-year breakdown.
Investment return inputs
Enter starting value, ending value, cash flows, income, fees, and holding period.
Initial investment value or purchase cost.
Current or final investment value.
Extra money added during the holding period.
Money taken out during the holding period.
Dividends, interest, rent, or other income received.
Trading fees, platform fees, advisor fees, or other costs.
Use decimals for partial years, such as 2.5.
Optional comparison return assumption.
Total return
28.33%
Positive return: The investment gained value after income, withdrawals, contributions, and fees.
Gain / loss
£3,400.00
Adjusted ending value minus invested capital.
Annualized return
5.12%
5 year holding period.
Adjusted ending value
£15,400.00
Ending value plus withdrawals and income, minus fees.
Invested capital
£12,000.00
Starting value plus additional contributions.
Growth multiple
1.28×
Adjusted ending value divided by invested capital.
Benchmark difference
-£1,430.62
Compared with 7.00% annual benchmark.
Fee drag
0.83%
Fees as a percentage of invested capital.
Support
Investment support layer
Return formula
Calculates gain, total return, annualized return, growth multiple, and benchmark comparison.
Estimate only
Results do not include tax rules, exact timing of cash flows, inflation, or market risk.
Decision support
Use this calculator to compare investments, review performance, and understand fee impact.
Interpretation
What these investment return results mean
Total return
Your total return is 28.33%, based on adjusted gain or loss of £3,400.00.
Annualized return
Over 5 years, the annualized return is approximately 5.12%.
Cash flows included
The calculation includes £2,000.00 in contributions, £0.00 in withdrawals, and £500.00 in income.
Benchmark comparison
At the benchmark rate, the comparable ending value would be about £16,830.62.
Basics
How investment return works
Invested capital
Invested capital includes the original amount plus any additional contributions.
Adjusted ending value
Ending value can be adjusted for withdrawals, dividends, income, and fees.
Return percentage
Return percentage compares gain or loss with invested capital.
Time period
Annualized return helps compare investments held for different lengths of time.
Comparison
Total return vs annualized return
Total return
28.33%
Total return measures the full gain or loss across the entire holding period.
Annualized return
5.12%
Annualized return smooths that performance into a yearly compound rate.
Risk
What investment return does not show
Volatility
Return does not show how much the investment moved up or down along the way.
Drawdowns
Two investments can have similar returns but very different temporary losses.
Taxes
Taxes can reduce after-tax return depending on account type, holding period, and location.
Inflation
Inflation reduces purchasing power, so nominal return is not the same as real return.
Cash-flow timing
Simple return may not fully capture exact deposit and withdrawal timing.
Benchmark relevance
A benchmark should match the asset class, risk level, and time horizon where possible.
Formula
Investment return formula explanation
Gain or loss
Gain / Loss = Adjusted Ending Value − Invested CapitalAdjusted ending value includes ending value plus withdrawals and income, minus fees.
Total return
Total Return = Gain / Loss ÷ Invested Capital × 100Total return shows the full percentage gain or loss over the selected period.
Annualized return
Annualized Return = (Adjusted Ending Value ÷ Invested Capital)^(1 / Years) − 1Annualized return converts total performance into a smoothed yearly compound rate.
FAQ
Investment return calculator questions
Investment return measures the gain or loss on an investment compared with the amount invested. It can be shown as a currency amount, total return percentage, or annualized return.
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