How the Investment Return Calculator works
Calculate investment gain and annualized return. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this investment return calculator to estimate gain and annualized return after accounting for additional contributions. It is useful when a portfolio grew over time but part of the ending value came from new money you added.
Formula
Gain = ending value - initial investment - additional contributions
- Initial investment is the starting portfolio value.
- Additional contributions are new money added during the period.
- Ending value is the final portfolio value after growth or loss.
- Years is used to estimate an annualized return.
Worked example
For a $10,000 starting investment, $5,000 in added contributions and a $20,000 ending value after 5 years, the calculator estimates a $5,000 gain and an annualized return estimate.
Common mistakes
- Counting your own contributions as investment growth.
- Ignoring withdrawals, taxes or advisory fees.
- Comparing annualized returns without considering risk.
FAQs
Why subtract contributions?
Contributions are money you added, not investment gain. Subtracting them gives a clearer return estimate.
Is the annualized return exact?
It is a simplified estimate and may differ from time-weighted or money-weighted return calculations.
Should I include dividends?
Include dividends in the ending value if they were reinvested or in total proceeds if they were paid out.