Percentage Return Calculator
Calculate the total percentage return and the (geometric) annualised return of an investment.
Input Data
Results
At a glance:The Percentage Return Calculator works out the 'total percentage return' and the 'annualised return' of an investment. Total percentage return = (recovered − initial investment) ÷ initial investment — the cumulative return over the whole period. Annualised return = (recovered ÷ initial investment)^(1 ÷ years) − 1, spreading the total return evenly across each year by geometric compounding, so investments of different holding periods can be compared on a common annual basis. The return can be negative (a loss).
Formula
Total percentage return = (recovered − initial) ÷ initial.
Annualised return = (recovered ÷ initial)^(1 ÷ years) − 1.
Annualised return uses compounding and spreads the total return across each year.
How to Use
- Enter the amount invested at the start.
- Enter the amount recovered at the end.
- Enter the holding period to get the total and annualised return instantly.
FAQ
What is the difference between total percentage return and annualised return?
Total percentage return is the cumulative return over the whole holding period; annualised return spreads it evenly across each year by geometric compounding, so different holding periods can be compared. For example, doubling in two years is a 100% total return but only about 41.4% annualised.
Can the return be negative?
Yes. If the amount recovered is less than the initial investment, both the total percentage return and the annualised return are negative, representing a loss.
What happens if I leave the horizon blank or zero?
With a horizon of 0 or blank, only the total percentage return is computed; the annualised return shows 0 because the return cannot be spread across years.
Are percentage return, annualised return and CAGR the same thing, and how do they relate to ROI?
Annualised return and CAGR are essentially the same concept; total percentage return and ROI are essentially the same concept; and annualising (CAGR) is the compounding-based spreading of the total return (ROI) across years. Specifically: total percentage return = ROI = (recovered − invested) ÷ invested — it ignores time, so 50% is 50% whether earned in 1 year or 10. Annualised return = CAGR = (recovered ÷ invested)^(1 ÷ years) − 1 — it factors in time and compounding, giving a fair annual benchmark. Use ROI/total return to see 'how much in total', and annualised/CAGR to compare investments of different holding periods or to see the average yearly rate; for investments with multiple cash flows in and out, use IRR instead.
Does the calculated return deduct tax, fees or inflation to be a 'real' return?
This calculator's result is a nominal, pre-tax, pre-fee book return — it only compares what you put in and took out. For the true return in hand, consider three factors. Fees: brokerage, stamp duty, fund management/expense ratios and platform fees lower the actual amount recovered; enter the net recovered amount if you want fees reflected. Tax: Hong Kong is friendly to individual investors — generally no capital gains tax, and personal share-trading gains are usually not taxed — but overseas investments (e.g. US dividend withholding) or trading-as-a-business may be taxed, so post-tax is what truly lands. Inflation: the most overlooked — a 30% nominal gain over three years with comparable cumulative inflation means your real purchasing-power gain is lower; use the real rate of return (Fisher equation) to adjust. Best practice: enter the net-of-fee, net-of-tax recovered amount, then use this site's real-rate-of-return calculator to strip out inflation, and compare investments on the same basis (all pre- or all post-tax, all nominal or all real).
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.