Stock Return Calculator
Calculate total return and annual average return (CAGR) on a stock or fund investment, based on start and end value.
How to use the stock return calculator
- Enter how much you originally invested.
- Enter what the investment is worth today (or at sale).
- Enter how many years you've held the investment — the calculator shows total return and annual average return.
How the return is calculated
Total return shows how much the investment has increased in value overall:
Worked example: $5,000 that has grown to $7,800 over 4 years is a total return of (7,800 − 5,000) ÷ 5,000 = 56 %. The annual return is not 56 % ÷ 4 = 14 % — that is the most common mistake. Because returns compound on themselves, the correct annual rate is (7,800 ÷ 5,000)^(1/4) − 1 = 11.8 %. Dividing by the number of years always overstates the annual return.
CAGR (Compound Annual Growth Rate) shows what the average annual growth has been, as if the return were spread evenly across the whole period — useful for comparing investments with different time horizons:
Frequently asked questions
Why is CAGR lower than total return divided by number of years?
Because CAGR accounts for the compounding effect. A simple average (total return ÷ years) doesn't underestimate this, but gives a slightly different — and less precise — picture of steady annual growth than CAGR.
Can I use this for funds too?
Yes, the calculator works the same way for individual stocks, funds, and other investments where you know the start and end value.