Rate of Return Calculator
From the initial value, final value and income received, compute the total rate of return (ROR) and profit/loss of an investment.
Input Data
Results
At a glance:The Rate of Return (ROR) measures how much an investment earned as a percentage over the whole holding period. It combines two parts of return: the capital gain from price movement (final value minus initial investment) and the cash income received during the holding period (such as dividends, bond coupon or property rent). Adding both gives the total profit/loss, then dividing by the initial investment gives the total rate of return. Unlike looking at price change alone, the ROR includes dividends and rent, giving a fuller picture of real performance, so Hong Kong investors commonly use it to assess stocks, funds, bonds or tenanted property. Note it ignores the holding period — for fair comparison across horizons, convert to the annualised compound return (CAGR).
Formula
Total profit/loss = (final value − initial investment) + income received.
Total rate of return = total profit/loss ÷ initial investment × 100%.
How to Use
- Enter the initial investment amount.
- Enter the final value and the income received during the holding period (dividends, interest, rent, etc.).
- The total rate of return and total profit/loss show instantly.
FAQ
How is the rate of return different from CAGR?
This calculator gives the total return over the whole holding period, ignoring how long you held the asset. To express it as a yearly compounded figure, convert it to CAGR with the CAGR calculator.
Why include income received during the period?
Dividends, bond coupons and rent are all part of the return. Looking only at price change understates the true result, so including income reflects real performance.
Does a positive return mean I beat the market?
Not necessarily. A positive nominal return only means more money on paper. To judge whether it was 'worth it', deduct inflation and your cost of capital — a 3% return when inflation is 2%-3% barely grows real purchasing power, and if a deposit paid 4%, the 3% actually lost to the risk-free option.
Can returns of different holding periods be compared directly?
No. A 30% return over 3 years and a 30% return over 10 years look identical but differ hugely in attractiveness. Convert to an annualised CAGR to compare fairly across horizons.
Can the rate of return be negative?
Yes. When final value plus income is below the initial investment, the total profit is negative and so is the return. For example, HK$200,000 in, HK$180,000 out, no income → −10%. Negative returns are a normal investment risk and should be reflected honestly.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.