Return calculators
Simple and compound returns, returns against a benchmark after fees, and returns on a foreign-currency investment.
From start and end values
Linking period returns
Enter each period's return in order, for example each year's or each month's return.
About this calculator
Four ways to measure a return
Simple return compares what you ended with against what you put in, including dividends and after charges. It answers what happened, but takes no account of how long it took.
Compound return, or CAGR, is the steady yearly rate that would have produced the same result. It is the fair way to compare investments held for different lengths of time, and it is always lower than the simple average of the yearly returns when those returns vary.
Return against a benchmark strips out what the market did anyway. A 12% return in a year the index gained 10% is two percentage points of value added, before fees. Subtract the fee and much of that can disappear.
Currency return matters whenever the investment is priced in another currency. The two returns multiply rather than add: 10% on the asset and 5% on the currency gives 15.5%, not 15%.
Why the geometric average is the honest one
Returns of +50% and −50% average zero if you simply add and divide, but they leave you 25% down. Linking them by multiplying gives the geometric average, which reflects what actually happened to the money. Any figure quoted as an average return should be the geometric one.
Common questions
What is the difference between CAGR and average return?
CAGR is the steady yearly rate that links the start value to the end value, so it accounts for compounding. A simple average of yearly returns ignores it and overstates the result whenever returns vary.
How do I compare my portfolio with an index?
Subtract the index return from yours for the arithmetic excess, or divide one plus your return by one plus the index return for the geometric version. Deduct fees from your return first, since the index has none.
How does the exchange rate affect my foreign investment?
The investment return and the currency return multiply. A fund up 10% in dollars while the rupee weakens 5% against the dollar returns 15.5% in rupees; if the rupee strengthens 5% instead, you get 4.5%.