Return Calculator
Calculate the total return on your stock investment, accounting for capital gains and dividends. Enter a holding period to also see the annualised return (CAGR), which lets you compare investments of different lengths.
Required for annualised return (CAGR)
How is total return calculated?
The total return on a stock investment consists of two components: capital gain (or loss) and dividends. The calculator adds both together.
Total return (€) = (Sell price − Buy price) × Shares + Dividends
Total return (%) = Total return (€) / Amount invested × 100
What is CAGR?
CAGR (Compound Annual Growth Rate) is the annualised return that explains an investment's growth from its starting value to its ending value over a given holding period. It accounts for the compounding effect.
CAGR = (Final value / Initial value)^(1 / Years) − 1
CAGR is a useful tool when you want to compare investment periods of different lengths. For example, a 40% return over five years equates to approximately 6.96% per year.
The role of dividends in total return
Dividends often form a significant part of the total return on a stock investment — especially over the long term. Entering the dividends received during the holding period gives you a more realistic picture of the true return.
Enter dividends consistently as either gross or net — the calculator does not account for tax.
Calculate the tax impact of dividends with the dividend calculator.
What does the return tell you?
- Positive return — the investment has made a profit. Compare the return to an index or alternative investments.
- Negative return — the investment has made a loss. The loss is only realised upon sale.
- Annualised return (CAGR) — allows comparison of investments regardless of holding period. The historical long-term return of equity markets is approximately 7–10% per year.
Read more about investment strategies or explore the basics of stock investing.