Target return
Type a target amount to get the return you need, or type a return to get the final amount. The other one updates.
About this calculator
Working backwards from the amount you want
Most return calculators start with a rate and tell you the final value. This one works in both directions. Type the amount you want and it gives the return needed; type a return and it gives the amount you would end with. Whichever you change, the other follows.
Turning ₹80,000 into ₹1,00,000 needs a 25% return, not 20%: the gain of ₹20,000 is measured against what you invested, not against the target. Getting that the wrong way round is one of the commonest mistakes in setting price targets.
Spreading the target over years
A 60% total return sounds ambitious until you spread it over five years, where it works out at about 9.9% a year. Entering a number of years shows the compounded yearly return required, which is the figure to compare against what an investment can realistically deliver.
If the yearly rate needed looks far above what the asset has historically returned, the target is the problem, not the investment.
Common questions
What return do I need to turn ₹80,000 into ₹1,00,000?
25%. The ₹20,000 gain is measured against the ₹80,000 invested, not against the ₹1,00,000 target.
How do I convert a total return into a yearly one?
Take the growth multiple, raise it to the power of one divided by the number of years, and subtract one. Enter the years in the calculator and it does this for you.
What share price do I need to hit my target?
Enter your buy price and the calculator gives the target price per share along with the return needed to reach it.