Rate of Return Calculator
Calculate the rate of return on your investments with our free online calculator. Measure your investment performance using absolute returns, CAGR, and annualized returns.
Investment Growth Visualization
Return Comparison
Key Features
How to Use This Calculator
Understanding Rate of Return
The Rate of Return Calculator helps you measure how well your investments have performed over time. Understanding your returns is essential for evaluating investment decisions and comparing different opportunities.
Absolute return is the simplest measure: (Final Value - Initial Value) / Initial Value × 100. If you invested ₹10,000 and it grew to ₹15,000, your absolute return is 50%. However, this doesn't account for the time period.
CAGR (Compound Annual Growth Rate) is a more meaningful measure for comparing investments over different time periods. It shows the constant annual rate of return that would result in the final value. The formula is: CAGR = (Final Value / Initial Value)^(1/years) - 1.
Annualized returns convert returns from any period to an equivalent annual rate, making it easier to compare investments. A 50% return over 5 years is very different from 50% in 1 year - annualized returns make this clear.
When calculating total returns, include dividends and other distributions. Many investments generate income that significantly contributes to total returns but is often overlooked when looking only at price appreciation.