Investment Return Calculator
Calculate your investment performance including total return, compound annual growth rate (CAGR), and annualized returns. Add regular contributions and projected future returns.
Investment Results
Understanding Investment Returns
Investment returns can be measured in several ways. Here are the key metrics:
- Total Return: The overall gain (or loss) including both capital appreciation and reinvested dividends/interest.
- ROI (Return on Investment): Total gain divided by total invested, expressed as a percentage.
- CAGR (Compound Annual Growth Rate): The smoothed annual rate of return over a period, accounting for compounding.
What's a Good Investment Return?
Historically, different asset classes deliver different returns:
- U.S. Large-Cap Stocks (S&P 500): ~10% annualized (before inflation)
- U.S. Bonds: ~5-6% annualized
- Real Estate: ~8-10% annualized (with leverage)
- Savings Accounts/CDs: ~3-5% (as of 2026)
A diversified portfolio of 60% stocks and 40% bonds has historically returned approximately 8% annually.
Investment FAQ
Nominal returns are the raw percentage gains before adjusting for inflation. Real returns subtract the inflation rate to show actual purchasing power growth. If your portfolio returns 8% and inflation is 3%, your real return is approximately 5%.
Research from Vanguard shows that lump sum investing outperforms dollar-cost averaging about 68% of the time because markets tend to rise over time. However, DCA can provide psychological comfort and reduce regret if markets drop right after you invest.