Investment Return Calculator
Calculate total returns, annual returns, and CAGR for your investments
Investment Analysis
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Investment Results
Enter your investment details
See your investment performance analysis
Performance Compare
How does your return compare?
2-3%
Savings Account
Low risk, guaranteed returns
4-6%
Government Bonds
Conservative, stable returns
7-10%
Stock Market Average
Historical long-term average
12%+
High Growth
Higher risk, potential reward
Investment Return Guide
Understanding Returns
- Total Return: Overall gain or loss on your investment
- Annual Return: Average yearly return percentage
- CAGR: Compound Annual Growth Rate - smoothed annual return
- Simple Return: Basic percentage gain without compounding
- Real Return: Return adjusted for inflation
Types of Investment Returns
- Capital Gains: Profit from selling at higher price
- Dividends: Regular payments from company profits
- Interest: Fixed payments from bonds or deposits
- Rental Income: Regular income from property investments
Risk vs Return
- Low Risk: Savings accounts, government bonds (2-4%)
- Medium Risk: Corporate bonds, mixed funds (4-8%)
- High Risk: Individual stocks, growth funds (8%+)
- Diversification: Spread risk across different assets
Investment Strategies
- Buy and Hold: Long-term investment strategy
- Dollar Cost Averaging: Regular investments over time
- Value Investing: Buy undervalued securities
- Growth Investing: Focus on companies with high growth potential
- Index Investing: Track market performance with low fees
Time Horizon Guidelines
- Short-term (< 2 years): High-yield savings, money market
- Medium-term (2-7 years): Balanced funds, corporate bonds
- Long-term (7+ years): Stock market, growth investments
- Retirement (20+ years): Aggressive growth when young
Tax Considerations
- ISAs: Tax-free investment accounts (£20,000 limit)
- Capital Gains Tax: Tax on investment profits
- Dividend Tax: Tax on dividend income
- Pension Contributions: Tax relief on retirement savings
Investment Risk Warning
Past performance does not guarantee future results. All investments carry risk, including potential loss of principal. Higher returns typically involve higher risk. Consider your risk tolerance, investment timeline, and financial goals before investing. Diversification can help reduce risk but cannot eliminate it entirely.