Investment Return Calculator
Evaluate index funds, stocks, and mutual funds. Solve for future value, total return (ROI), or CAGR while accounting for periodic contributions, annual fee ratios, tax drags, and dividend reinvestment.
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Improve the accuracy of your personalized financial diagnostics.
| Scenario | Profile | Projected Portfolio Value |
|---|---|---|
Base Settings | Default inputs and growth assumptions | $371,570 |
Conservative | Lower yield, higher inflation, haircuts | $331,562 |
Optimistic | Favorable yield, lower inflation, growth | $404,857 |
Stress Test | Severe economic crash and high inflation | $295,857 |
How to Use the Investment Return Calculator
Building long-term wealth depends heavily on compounding returns, fee efficiency, and tax strategies. The Investment Return Calculator computes the absolute return (ROI) and annualized growth rate (CAGR) of any portfolio, factoring in recurring contributions, dividend reinvestment, expense ratio fees, and capital gains taxes.
- Scenario Mode: Bounded parameter in the mathematical model.
- Solve For: Bounded parameter in the mathematical model.
- Initial Investment ($): Bounded parameter in the mathematical model.
- Periodic Contribution ($): Bounded parameter in the mathematical model.
- Contribution Frequency: Bounded parameter in the mathematical model.
- Contribution Timing: Bounded parameter in the mathematical model.
- Expected Annual Return (%): Bounded parameter in the mathematical model.
- Annual Dividend Yield (%): Bounded parameter in the mathematical model.
- Reinvest Dividends: Bounded parameter in the mathematical model.
- Holding Duration (Years): Bounded parameter in the mathematical model.
- Annual Expense Ratio / Fees (%): Bounded parameter in the mathematical model.
- Gains / Dividend Tax Rate (%): Bounded parameter in the mathematical model.
- Compounding Frequency: Bounded parameter in the mathematical model.
- Adjust for Inflation: Bounded parameter in the mathematical model.
- Expected Inflation Rate (%): Bounded parameter in the mathematical model.
- Risk Tolerance: Bounded parameter in the mathematical model.
- Investment Goal: Bounded parameter in the mathematical model.
- Current Salary ($): Bounded parameter in the mathematical model.
Investment Return Performance: CAGR, ROI & Fees Explained
Understand how to calculate investment returns, total ROI, CAGR, and how expense ratios and capital gains taxes affect compounding wealth.
Read Full Guide →What is the difference between ROI and CAGR?
ROI (Return on Investment) measures the absolute percentage gain relative to the initial cost. CAGR (Compound Annual Growth Rate) measures the average annual rate at which an investment grows, accounting for the effect of compounding over time.
How does an expense ratio affect my returns?
The expense ratio is an annual fee charged by mutual funds or ETFs to cover management costs. Even a small difference (e.g., 0.05% vs. 1.25%) can compound into thousands of dollars in lost returns over long horizons.
Why are dividends taxed immediately in this model?
In taxable accounts, dividends distributed by funds or stocks are generally subject to dividend tax in the year they are paid, even if they are immediately reinvested. This model applies tax to dividend distributions and increases your reinvestment cost basis.
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