Investment Return Calculator

Calculate the return on your investments. See how initial investment, annual contributions, and compound returns grow your portfolio over time.

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$0$1,000,000
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$0$100,000
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1 yr50 yr

Investment Results

Final Portfolio Value$781,059.4
Total Invested$200,000
Total Investment Gains$581,059.4
Return on Investment290.5%

Portfolio Growth

Understanding Investment Returns

Your investment return depends on three key factors: how much you invest, how long you stay invested, and what rate of return you earn. This calculator helps you model different scenarios to plan your financial future.

Historical Average Returns by Asset Class

  • US Large-Cap Stocks (S&P 500) — ~10% annually
  • US Small-Cap Stocks — ~12% annually
  • International Stocks — ~8% annually
  • US Bonds — ~5% annually
  • Real Estate (REITs) — ~9% annually
  • High-Yield Savings — ~4-5% currently

Past performance does not guarantee future results. These are long-term historical averages.

Tips for Better Investment Returns

  • Diversify — Spread investments across asset classes to reduce risk
  • Keep costs low — Choose low-cost index funds (0.03-0.20% expense ratios)
  • Stay the course — Avoid emotional decisions during market downturns
  • Rebalance annually — Maintain your target asset allocation
  • Maximize tax-advantaged accounts — Use 401(k), IRA, and HSA before taxable accounts

Frequently Asked Questions

What is a good annual return on investments?
The S&P 500 has historically returned about 10% annually. After inflation, this is about 7%. A diversified portfolio of stocks and bonds might return 6-8% long-term. Returns vary significantly year to year.
How does dollar-cost averaging work?
Dollar-cost averaging means investing a fixed amount at regular intervals regardless of market conditions. This strategy reduces the impact of market volatility — you buy more shares when prices are low and fewer when prices are high.
Should I reinvest dividends?
Reinvesting dividends significantly boosts long-term returns through compounding. Historically, reinvested dividends have accounted for about 40% of the S&P 500 total return. Unless you need the income, reinvesting is generally recommended.
How does inflation affect investment returns?
Inflation reduces the purchasing power of your returns. If your investments return 8% and inflation is 3%, your real (inflation-adjusted) return is about 5%. Always consider real returns when planning long-term goals.

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