Rate Of Return Calculator
Calculate the rate of return on an investment over a given period, including total return and annualized return.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the Rate of Return Calculator
- Enter Initial Value: Input the starting amount (e.g., $1,000). Must be a positive number.
- Enter Final Value: Input the ending amount (e.g., $1,500). Must be a positive number.
- Enter Number of Years: Input the time period (e.g., 5). Must be greater than zero.
- Click "Calculate": The calculator computes:
- Total Return: Percentage gain from start to end.
- Annualized Return (CAGR): Average yearly growth rate.
- Review Results: Outputs appear below with formulas used.
Tip: Use any currency or unit consistently. All inputs must be positive numbers.
Previous Results
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Frequently Asked Questions
Rate of return is the gain or loss on an investment over a specified period, expressed as a percentage of the initial investment.
Annualized return (CAGR) is calculated as (Final Value / Initial Value)^(1/Years) - 1, expressed as a percentage.
Yes, if the final value is less than the initial value, the total return will be negative, indicating a loss.
