📈 If you’re investing in stocks, real estate, or a small business, knowing how to calculate your investment return is essential for tracking performance and making smart decisions.
In this guide, we’ll break down how investment return works, the difference between total and percentage returns, and give you a simple calculator to use right on your site.
Table of Contents
🙋 What Is Investment Return?
Investment return is the gain or loss on an investment over a period of time. It’s usually expressed in two ways:
- Absolute return: the total dollar gain or loss
- Percentage return: the gain or loss as a percent of your initial investment
Knowing both helps you evaluate whether your investment is performing well.
Use the calculator below to quickly estimate your investment return based on beginning value, ending value, and income:
🧮 Formula to Calculate Investment Return
1. Total Return (in dollars)
Total Return = Ending Value – Beginning Value + IncomeWhere:
- Beginning Value = the amount you initially invested
- Ending Value = the current value of your investment
- Income = any dividends, interest, or rental income earned
2. Percentage Return
% Return = [(Ending Value – Beginning Value + Income) / Beginning Value] × 100This gives you a clearer picture of how well your investment performed relative to the amount invested.
⚙️ Example Calculation
Let’s say:
- You invested $5,000
- It’s now worth $5,800
- You earned $100 in dividends
Total Return = 5,800 – 5,000 + 100 = $900
% Return = (900 / 5,000) × 100 = 18%
💡 Why Return Matters
Tracking return helps you:
- Compare investment performance
- Decide whether to hold, sell, or reinvest
- Evaluate risk versus reward
Over time, small percentage differences compound — so every bit of return counts!