Investment Returns Calculator
From principal, final value and holding years, compute total return and annualised return (CAGR).
Input Data
Results
At a glance:Total return = (final value − principal) ÷ principal × 100%. Annualised return (CAGR) = (final value ÷ principal)^(1/years) − 1. Profit = final value − principal. CAGR annualises the return for fair comparison across horizons.
Formula
Total return (%) = (final − principal) ÷ principal × 100.
CAGR = (final ÷ principal)^(1/years) − 1.
Profit = final − principal.
$$\text{Total Return} = \dfrac{\text{Final} - \text{Principal}}{\text{Principal}} \times 100\%$$$$\text{CAGR} = \left(\dfrac{\text{Final}}{\text{Principal}}\right)^{\frac{1}{\text{Years}}} - 1$$How to Use
- Enter the principal invested.
- Enter the final total value.
- Enter the holding years.
- View the total return, CAGR and profit.
Case Studies
HK$100k to HK$150k in 5 years
Total return = (150,000 − 100,000) ÷ 100,000 = 50%.
CAGR = (1.5)^(1/5) − 1 ≈ 8.45%.
Profit = 50,000.
FAQ
What is the difference between CAGR and total return?
Total return is the cumulative gain over the whole period; CAGR annualises it into a compound yearly rate for fair comparison across horizons. The two are complementary.
Why is CAGR lower than total return ÷ years?
Because of compounding: total ÷ years is a simple average; CAGR reflects rolling compounding, and the gap widens over longer periods. CAGR is closer to the true annualised performance.
What if I add or redeem during the period?
This tool assumes a one-off investment and redemption. With regular contributions or mid-period flows, use a money-weighted return (IRR/MWR) or the numbers will be misleading.
Should inflation be considered?
CAGR is nominal, not inflation-adjusted. Real return ≈ nominal CAGR − inflation (approx) or (1+CAGR)/(1+inflation) − 1. Pair with the inflation-adjusted calculator.
Do fees and tax matter much?
Bid-ask spreads, platform and management fees eat returns, significantly under compounding long run. Use the post-fee net value as final value to reflect real take-home return.
Does past return predict the future?
No. Past performance is no guarantee. CAGR only summarises what happened; consider risk, diversification and your own tolerance before investing.
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References
Content review: Calculatorism Science Team. Results are for reference only; please refer to the relevant authorities for the official figures.