How it works
Investment return combines changes in asset value with cash income received. Enter dividends or interest here only if they are outside the ending value and have not also been counted as withdrawals.
The formula
Keep currency, units and time periods consistent. Percentage inputs use percentage points (enter 5 for 5%). Results are rounded only for display; tiny nonzero values may use scientific notation. Undefined ratios are shown as unavailable.
$20,000 invested, a $24,500 ending value and $800 external income give $5,300 net gain and a 26.50% simple return.
Calculation method
Additional contributions are new invested capital, not investment gains. Withdrawals are added back to ending wealth. The resulting percentage is a simple return on all invested capital, ignoring the dates when each cash flow occurred.
Interpretation
Annualization is displayed only for a positive term with no additional contributions, withdrawals or external cash income. That conservative condition avoids implying a time-weighted or money-weighted return from incomplete cash-flow dates.
Limitations
Return does not describe volatility, downside exposure or liquidity. A target-return comparison is a mathematical gap, not an assessment that the investment was suitable or that a future return will match it.
Method and reference sources
Method and content checked 2026-09-20. These sources provide background, not endorsement or professional certification. The formula and limitations above define this calculator.
- Investor.gov — Compound Interest CalculatorGrowth, contribution and time-horizon context; this site does not forecast investment returns.
- Investor.gov — Understanding FeesInvestment fee and compounding context; enter the terms of your fund or account.
Frequently asked questions
Why are deposits not automatically investment gains?
A deposit adds your own capital. The tool separates entered contributions and withdrawals from change in value; a simple ROI still does not replace a cash-flow-timed performance measure.
What is a worked example for Investment Return?
$20,000 invested, a $24,500 ending value and $800 external income give $5,300 net gain and a 26.50% simple return.