How the Investment Return Calculator works
Investment performance should separate growth from money added. This calculator subtracts contributions before measuring gain and provides a simple annualized estimate for comparison across periods.
Method: Gain = ending value โ starting value โ contributions; total return divides gain by total invested capital.
Inputs to review
- Starting investment: Use a realistic current value and test a conservative alternative.
- Ending value: Use a realistic current value and test a conservative alternative.
- Additional contributions: Use a realistic current value and test a conservative alternative.
- Holding period: Use a realistic current value and test a conservative alternative.
How to interpret the result
Use account statements for exact cash-flow dates. When deposits and withdrawals occur throughout the period, a time-weighted or money-weighted return is more precise than this simplified estimate.
Assumptions and limitations
The annualized figure assumes invested capital was present for the full period. It does not model taxes, fees, distributions withdrawn, or the timing of cash flows.
Recalculate when rates, balances, income, goals, or time horizons change. A useful estimate is a range built from several plausible scenarios, not a single precise-looking number.