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Rate of Return Calculator – Calculate Investment ROI, Annualized Return, CAGR & Real Return After Inflation

Rate of Return Calculator
Enter your investment's starting value, ending value, and time period to instantly find your ROI, annualized return, CAGR, and real return after inflation — free investment return calculator.
No data stored
Instant results
Mobile friendly
100% free
CAGR & real return included

Enter Your Investment Details

What you originally invested or paid
Current value or final sale price
Leave blank for single-period simple ROI

Your Return Summary

Enter your starting value, ending value, and time period, then click Calculate to see your full return breakdown.

Simple Return (ROI)
0.00%
over the full holding period
Return Breakdown
Starting Value —
Ending Value —
Net Gain / Loss —

Return Breakdown

Investment Growth Over Time

What Is Rate of Return?

Rate of return (RoR) is the percentage gain or loss on an investment over a period of time. It tells you how much your money grew — or shrank — relative to what you started with. A positive rate of return means your investment made money. A negative rate means it lost value.

Investors use rate of return to compare different assets side by side. A $5,000 profit on a $50,000 investment is a 10% return. The same $5,000 profit on a $20,000 investment is a 25% return — much better relative performance.

Rate of return is useful for stocks, real estate, savings accounts, bonds, mutual funds, and any other asset where you put money in and expect it to grow over time.

Rate of Return Formulas

  • Simple ROI = ((End − Start) / Start) × 100
  • Total Return = ((End − Start + Income − Fees) / Start) × 100
  • CAGR = (End / Start)^(1 / Years) − 1
  • Real Return = ((1 + Nominal) / (1 + Inflation)) − 1
  • Log Return = ln(End / Start)

Example: You invest $10,000. After 5 years it is worth $16,105. Simple ROI = 61.05%. CAGR = (16,105/10,000)^(1/5) − 1 = 10.0% per year.

Quick Reference — Common Return Benchmarks

Asset Type Avg Annual Return Risk Level
US Savings Account0.5 – 5%Very Low
US Treasury Bonds3 – 5%Very Low
Corporate Bonds4 – 7%Low–Medium
Real Estate (rental)6 – 10%Medium
S&P 500 Index Fund7 – 10%Medium
Growth Stocks10 – 20%+High
Crypto AssetsHighly variableVery High
Gold3 – 7%Low–Medium

Averages are based on historical data and do not guarantee future results.

Types of Rate of Return Explained

Simple ROI is the most basic form. It shows total gain or loss as a percentage, with no adjustment for time. Good for quick comparisons within the same time frame.

CAGR (Compound Annual Growth Rate) converts total return into a per-year figure. It is the most useful metric for comparing investments held over different lengths of time.

Real Return strips out the effect of inflation. If your investment returned 8% but inflation was 3%, your purchasing power only grew by about 4.85%. Real return tells you what you actually gained in today's money.

Total Return includes income like dividends, rent, or interest — not just the change in price. This is often the most complete picture of investment performance.

Frequently Asked Questions

Subtract your starting value from your ending value to get the gain or loss. Then divide that number by your starting value and multiply by 100. For example: you invested $8,000 and it grew to $10,400. Gain = $2,400. Return = (2,400 / 8,000) × 100 = 30%. That is your simple ROI for the full period.
ROI (return on investment) shows the total percentage gain or loss over the full period, regardless of how long you held it. CAGR (compound annual growth rate) converts that total into a steady yearly rate. CAGR is better for comparing investments held over different time lengths. For instance, a 100% ROI over 10 years is only about a 7.18% annual rate, while a 100% ROI over 3 years is a much stronger 26% annual rate.
There is no single answer — it depends on the asset type, risk, and time period. A common benchmark is the long-run historical average of the US stock market, which is roughly 7–10% per year before inflation. Savings accounts or government bonds may return 3–5%. High-risk assets may target 15%+ annually. Always compare your return against a relevant benchmark or index, not just against zero.
Simple price return does not include dividends or other income. Total return does include dividends, interest, and rental income received during the holding period. For stocks, the difference can be significant — over many years, dividends can account for a large portion of your actual gains. Our calculator lets you add income separately so you can see the full picture. You can also use a investment return tool to estimate dividend income.
Inflation reduces the purchasing power of your money over time. A nominal return of 9% during a year with 3% inflation gives you a real return of about 5.83%. To find real return, use the Fisher equation: Real Return = ((1 + Nominal Rate) / (1 + Inflation Rate)) − 1. Our calculator includes an inflation field in the advanced options so you can see your true, inflation-adjusted gain.
Yes. If your ending value is lower than your starting value, your rate of return will be negative, meaning you lost money. For example, investing $5,000 and ending up with $4,000 gives a return of −20%. Negative returns are common in volatile asset classes like stocks or crypto during downturns. They are a normal part of investing over time.

CAGR Equivalent by Simple ROI and Holding Period

What annualized return (CAGR) equals a given total simple return over different holding periods.

Simple ROI 1 Year
CAGR		 2 Years 3 Years 5 Years 7 Years 10 Years

CAGR = (1 + ROI%)^(1/years) − 1. A 100% total return over 10 years is only a 7.18% annual rate.

Rule of 72 — How Long to Double Your Money

Approximate years needed to double an investment at different annual return rates (Rule of 72).

Annual Return Years to Double
Rule of 72		 Years to Double
Exact CAGR		 Years to Triple Years to 5× Years to 10×

Rule of 72: divide 72 by the annual return % to estimate doubling time. Exact formula: ln(2) / ln(1 + rate).

Investment Growth Projection — $10,000 at Various Return Rates

How a $10,000 investment grows over time at different annualized returns.

Years 3% / yr 5% / yr 7% / yr 10% / yr 12% / yr 15% / yr

Formula: $10,000 × (1 + rate)^years. Shows compounding power over time. No additional contributions included.

Real Return After Inflation — Nominal vs Actual Purchasing Power Gain

How inflation reduces your nominal return to a lower real gain in purchasing power.

Nominal Return Inflation 2%
Real Return		 Inflation 3% Inflation 4% Inflation 5% Inflation 7% Inflation 10%

Real Return = ((1 + Nominal) / (1 + Inflation)) − 1. Negative real returns mean inflation outpaced your investment gains.

Global Market Return Benchmarks by Asset Class

Historical long-run average annual returns by asset class and region. For reference only.

Asset / Index Region Avg Annual Return Period Includes Dividends? Inflation Adj.?
S&P 500🇺🇸 USA10.1%1928–2024YesNo
S&P 500 (real)🇺🇸 USA7.0%1928–2024YesYes
FTSE All-World🌍 Global8.5%1990–2024YesNo
FTSE 100🇬🇧 UK7.5%1984–2024YesNo
DAX🇩🇪 Germany8.8%1988–2024YesNo
Nikkei 225🇯🇵 Japan5.2%1985–2024NoNo
US Treasury (10yr)🇺🇸 USA4.5%1928–2024—No
US Real Estate (REIT)🇺🇸 USA9.1%1972–2024YesNo
Gold🌍 Global4.8%1971–2024—No
Bitcoin🌍 Global~120%*2011–2024—No
High-Yield Savings🇺🇸 USA0.5–5%Current—No

* Bitcoin's average is heavily skewed by early years. Past performance does not guarantee future results. All figures are approximate and for general reference only.

After-Tax Net Return — What You Actually Keep

Pre-tax vs. post-tax return on a $10,000 investment at common capital gains tax rates.

Annual Return Gross Gain
10 years		 After 10% Tax After 15% Tax After 20% Tax After 25% Tax After 37% Tax

Based on a $10,000 investment held 10 years. Tax is applied to the total gain only. Actual tax treatment varies by country, asset type, and holding period.