What figures should I enter?

Enter the amount invested at the start, the current or sale value, and the number of years held. For the clearest simple comparison, use values after charges and a period with no additional deposits or withdrawals.

What is the difference between total and annualised return?

Total return is the full percentage gain or loss over the whole period. Annualised return expresses that result as an equivalent compounded yearly rate, which helps compare investments held for different lengths of time.

Does this calculator include dividends and interest?

Only if they are included in the current value you enter. Include reinvested income when measuring total return; if income was withdrawn as cash, add it to the ending proceeds before making a simple comparison.

Can I use this when I made regular contributions?

Not for a precise personal rate of return. Extra deposits and withdrawals distort a simple start-to-finish calculation, so use a money-weighted or time-weighted return method when cash flows occurred during the period.

Investment Return Calculator – Profit & CAGR

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Investment Return Calculator · UKInvestments & Savings

Example result based on the prefilled values.

Total Return

50.00%

Profit

£5,000.00

Annualised

8.45%

Continue your plan

Useful next calculations

Related to this calculation

Project growth inside an ISA

Model a starting balance and regular contributions in a UK tax-efficient wrapper.

Model future compound growth

Test how a return assumption and regular contributions could build over time.

Rates & sources

Total return and compound annual growth rate (CAGR) from a single starting value, ending value and holding period. Additional cash flows require a cash-flow-aware method.

Total return(end − start) ÷ start

Annualised return(end ÷ start)^(1/years) − 1

Fees / tax / inflationnot added automatically

Source: FCA — investment risk guidance — check the linked guidance and any live quote before acting.

When to use this calculator

Before choosing between saving, investing, or increasing your monthly contribution.
When you want to compare best-case, base-case, and cautious return assumptions.
When you need a quick projection before making a longer-term portfolio decision.
When you are deciding how many more years of contributions are needed to reach a specific target balance.
When you want to see whether starting earlier versus contributing more each month produces a bigger outcome.

Example: measuring the annualised return on an investment

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

Initial investment

£20,000

Current value

£29,500

Holding period

6 years

Cash flows during period

None

Compare the annualised return with an appropriate benchmark over the same dates, then deduct fees and consider inflation. If money was added or withdrawn during the period, a cash-flow-aware return method is needed for a fair result.

How to read your results

Total Return

This is the headline outcome of the calculation, but it is most useful when read alongside the supporting metrics below it rather than in isolation. Try changing one input at a time and watching how this total moves to understand which driver has the biggest impact.

Profit

Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.

Annualised

Method & assumptionsAuthoritative sources

This calculator determines total return and annualised return (CAGR) based on an initial value, a final value, and the holding period in years. The annualised return is calculated using the formula: CAGR = (Final Value / Initial Value)^(1/Years) − 1. It assumes a single lump-sum investment with no additional contributions or withdrawals. The figures produced are nominal and do not adjust for inflation, tax liabilities, or platform and fund charges. For UK investors, returns within an ISA or SIPP are sheltered from income tax and capital gains tax, which can significantly affect net-of-tax comparisons with unwrapped accounts. This tool is for illustrative and educational purposes and should not be treated as personal financial advice.

Common mistakes

!Assuming a constant return without checking a more conservative growth rate.
!Forgetting to include ongoing contributions, fees, or tax wrappers where relevant.
!Focusing only on the final balance instead of the path required to reach it.
!Ignoring the drag of platform fees or fund charges, which can reduce the real compounded return significantly over ten or more years.
!Comparing ISA and general investment account projections without adjusting for the tax treatment of interest, dividends, or capital gains.

What to do next

Compare the annualised result with a suitable benchmark covering the same start and end dates.
Recalculate using values after platform, dealing, and fund charges where possible.
Use an ISA or compound-growth calculator if the next question is future tax-efficient growth rather than past performance.

Frequently asked

It compares the initial investment with the current value to calculate cash profit and total percentage return. It then converts the change over the holding period into a compound annual growth rate.

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