Total Return Calculator
Combine capital growth and income into a single total return figure.
Please note: For information only, not investment advice. Projections assume constant rates; real markets fluctuate and capital is at risk.
What the Total Return Calculator does
Total return counts everything an investment produced: the change in value plus any income along the way. Price-only returns systematically understate income-generating assets like dividend shares, bonds and property.
Formula
Total gain = (Final − Initial) + IncomeTotal return % = Total gain ÷ Initial × 100Annualised = ((Final + Income) ÷ Initial)^(1 ÷ Years) − 1
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Initial investment | selected currency | Yes | Accepts more than 0. |
| Final value | selected currency | Yes | Accepts 0 or more. |
| Income received | selected currency | Optional | Dividends, interest or rent over the period. Accepts 0 or more. |
| Holding period | years | Optional | Accepts 0 or more, up to 100. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Initial investment and Final value.
- Optionally add Income received and Holding period.
- Select Calculate.
Worked example
$20,000 invested, now worth $26,500, with $2,400 of income over 4 years.
- Initial
- 20000
- Final
- 26500
- Income
- 2400
- Years
- 4
Total gain $8,900, a 44.5% total return, annualising to about 9.6%.
Frequently asked questions
Why does total return matter more than price return?
Because income is real money. Over long periods, reinvested dividends have accounted for a substantial share of equity market returns.
Method and sources
Method. Total return combines price change and income, expressed against the starting value, so distributions are counted rather than ignored.
Assumptions
- Income is included at the amount entered and, where compounded, reinvested at the point received.
- No tax, dealing cost or spread is deducted unless entered.
Limitations
- A single total-return figure hides the path. Two investments with the same total return can have had entirely different volatility and drawdown along the way.
- Where money was added or withdrawn mid-period, a simple total return misstates the investor experience; a money-weighted return answers that question instead.