Investment Return Calculator
Calculate total return, CAGR, and annualized performance of any investment.
Last updated April 2026
Annualized Return (CAGR)
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Disclaimer: This calculator is for general educational and informational purposes only. It does not constitute financial advice, investment advice, tax advice, or legal advice and is not a substitute for consultation with a qualified professional. No fiduciary or advisory relationship is created by your use of this tool. Results are estimates based on the inputs you provide, standard mathematical formulas, and publicly available data that may not be current and may not reflect your individual financial situation, applicable tax laws, or other relevant factors. Neither MayoCalc nor Cook Media Systems assumes any liability for losses, damages, or other consequences arising from the use of any information or results provided by this tool. Always consult a qualified financial advisor, certified public accountant, or attorney before making financial decisions. See our full
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How Investment Returns Work
Investment return is the gain or loss on an investment expressed as a percentage of the amount invested. Total return includes both price appreciation (the investment growing in value) and income (dividends or interest). The annualized return standardizes returns over different time periods so you can compare a 2-year investment against a 5-year one on equal footing.
Total Return = (Final Value - Initial Value + Dividends) / Initial Value x 100
Annualized Return = (1 + Total Return)^(1/years) - 1
How to Use This Calculator
Enter your initial investment, any regular contributions, the expected annual return rate, investment time period, and compounding frequency. The calculator shows your projected final value, total contributions, total returns, and a year-by-year growth table. You can compare different scenarios side by side to see how changing the rate, time, or contribution amount affects your outcome.
Historical Return Benchmarks
The S&P 500 has returned approximately 10% per year on average since 1926, or about 7% after inflation. U.S. bonds have averaged about 5% nominal. A balanced 60/40 stock/bond portfolio has averaged about 8%. These are long-term averages. Individual years vary wildly, from -37% (2008) to +31% (2019) for the S&P 500. The Compound Interest Calculator can model growth at different assumed rates.
Investment Return FAQ
What return should I assume for planning?
For long-term stock portfolios, 7% (inflation-adjusted) or 10% (nominal) is commonly used. For conservative or balanced portfolios, use 5-6%. For retirement planning, many advisors recommend using 6-7% to be conservative. Never plan around best-case scenarios.
Why does time matter more than the rate of return?
Because of compounding. $500/month at 7% for 30 years grows to $567,000. The same amount at 10% (a much higher rate) for 20 years grows to only $344,000. The extra 10 years of compounding at the lower rate produced more wealth. Starting early is the single most powerful investment decision you can make.
A 10% return sounds great until you subtract 3% inflation. Your real purchasing power only grew by 7%. This calculator lets you model returns with or without inflation adjustment so you can see what your money will actually buy in future dollars, not just what the number on the screen says.
Historical context: the S&P 500 has returned approximately 10% annually (nominal) or 7% (real, after inflation) over the long term. Bonds return 4-5% nominal, 1-2% real. Cash in a savings account barely keeps up with inflation. These long-term averages smooth out years of significant volatility, so expect wide variation in any given year or decade.