Total Return Calculator

The Total Return Calculator allows users to calculate the absolute return, total return percentage, investment period in years, and annualized return percentage based on initial investment, ending value, dividends received, and investment duration.

Use Our Total Return Calculator

Guide to Using the Total Return Calculator

This guide provides a step-by-step approach to efficiently using the Total Return Calculator to determine the absolute, total, and annualized returns of an investment. Follow the instructions below to input your investment details and understand the resulting figures.

Step 1: Input Details

Begin by entering the necessary details related to your investment:

  • Initial Investment ($): Enter the amount initially invested at the start of the investment period. This figure must be equal to or greater than zero.
  • Ending Investment Value ($): Input the value of your investment at the end of the period. Ensure this amount is not negative.
  • Total Dividends Received ($): Include the total amount of dividends received during the investment period. This should also be a non-negative value.
  • Investment Start Date: Select the date when the initial investment was made.
  • Investment End Date: Choose the date the investment period concludes.

Step 2: Review Calculator Outputs

Once you have filled in all the necessary input fields, the Total Return Calculator will provide the following results:

  • Absolute Return ($): This value is calculated using the formula: (ending value + dividends) – initial investment. It represents the total monetary gain or loss.
  • Total Return (%): The total return is computed with the formula: ((ending value + dividends – initial investment) / initial investment) * 100. This percentage shows the overall growth or decline of your investment.
  • Investment Period (Years): The number of years between the start and end dates is automatically calculated to show the duration for which the investment was held.
  • Annualized Return (%): This percentage provides a yearly growth rate using the formula: (pow((ending value + dividends) / initial investment, 1/years between start and end dates) – 1) * 100. It normalizes the returns over the investment period.

Step 3: Interpret Results

With these results, you can assess the financial performance of your investment. The Absolute Return gives you the actual monetary gain, while the Total and Annualized Returns provide insight into the efficiency of the investment. Use the Investment Period to understand the time scope of your calculations.

Always ensure to review all inputs for accuracy as any errors in input data will affect the reliability of the calculated outcomes.