Total Return and CAGR Calculator
Calculate compound interest effects and total returns over time.
Total Return and CAGR Calculator
A tool that calculates total return and compound annual growth rate (CAGR) from an investment's starting and ending values, cash dividends, and holding period.
How to use
Enter the starting value, ending value, total cash dividends received, and holding period, then select ‘Calculate Total Return.’ The result separates cumulative total return, price return, dividend yield, and CAGR.
What are total return and CAGR?
Total return measures the change relative to the starting value over the entire holding period. CAGR is the constant annual compound rate that would connect the same starting and ending values.
Calculation basis and formula
Total return is (ending value + cash dividends - starting value) ÷ starting value. CAGR is ((ending value + cash dividends) ÷ starting value)^(1 ÷ holding years) - 1.
How do the two measures differ?
Total return shows the cumulative outcome, while CAGR annualizes growth so periods of different lengths are easier to compare. CAGR does not mean the investment actually earned the same return every year.
What the calculation excludes
Intermediate cash flows such as purchases and withdrawals, dividend timing and reinvestment returns, taxes, fees, inflation, and volatility during the holding period are not included.
Ways to use the result
Use these measures to compare investments held for different lengths of time or review overall performance including cash dividends. If there were intermediate contributions or withdrawals, consider a separate cash-flow-based return measure alongside CAGR.