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Useful next calculations
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.
| Band / figure | Rate |
|---|---|
| Total return | (end − start) ÷ start |
| Annualised return | (end ÷ start)^(1/years) − 1 |
| Fees / tax / inflation | not 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 changing a contribution.
- When you want to compare cautious, base and optimistic return assumptions.
- When you need a projection before making a longer-term decision.
- When you want to see whether starting earlier or contributing more changes the outcome more.
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.
| Input | Value |
|---|---|
| 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 If money was added or withdrawn during the period, a cash-flow-aware return method is needed for a fair result.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
A projected outcome under the growth rate you entered. Real-world returns fluctuate, so also check a more conservative assumption.
Profit
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Annualised
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
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 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 charges over a long period.
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
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