MulticalcStock Return Calculator
Calculate Total Return, CAGR and dividend yield over a holding period
Amount invested at purchase (cash invested).
Value at sale (market value + remaining cash).
Sum of dividends received during holding period.
Number of years you held the investment.
Enter values to see Total Return and CAGR
Your performance summary will appear here
Return Summary
Total Return
0%
Annualized Return (CAGR)
0%
Initial Investment
$0
Final Value (incl. dividends)
$0
Mastering Stock Returns: A Complete Guide
Understanding stock investment performance requires more than knowing if you made money. Total Return and CAGR (Compound Annual Growth Rate) tell different but complementary stories about your investment success.
Total Return vs. CAGR: What's the Difference?
| Metric | What It Measures | Best Used For |
|---|---|---|
| Total Return | Overall % gain/loss including dividends | Absolute gains, short-term performance |
| CAGR | Smoothed annual growth rate | Long-term comparison, annualized performance |
Formulas:
Total Return = ((Final + Dividends - Initial) / Initial) × 100
CAGR = ((Final + Dividends) / Initial)^(1/Years) - 1
Total Return = ((Final + Dividends - Initial) / Initial) × 100
CAGR = ((Final + Dividends) / Initial)^(1/Years) - 1
Real-World Investment Scenarios
Investment: $10,000 | Period: 5 years
Final: $55,000 + $500 dividends
Total Return: 450% | CAGR: 40.8%
Analysis: Exceptional growth but 40%+ CAGR is rarely sustainable.
Final: $55,000 + $500 dividends
Total Return: 450% | CAGR: 40.8%
Analysis: Exceptional growth but 40%+ CAGR is rarely sustainable.
Investment: $20,000 | Period: 10 years
Final: $28,000 + $8,000 dividends
Total Return: 80% | CAGR: 6.1%
Key: Dividends were 40% of total gains!
Final: $28,000 + $8,000 dividends
Total Return: 80% | CAGR: 6.1%
Key: Dividends were 40% of total gains!
Investment: $5,000 | Period: 1.5 years
Final: $2,500
Total Return: -50% | CAGR: -39.7%
Lesson: Need 100% gain to recover from 50% loss!
Final: $2,500
Total Return: -50% | CAGR: -39.7%
Lesson: Need 100% gain to recover from 50% loss!
Investment: $15,000 | Period: 20 years
Final: $72,000 + $23,000 dividends
Total Return: 533% | CAGR: 9.2%
Proof: Time in market beats timing the market!
Final: $72,000 + $23,000 dividends
Total Return: 533% | CAGR: 9.2%
Proof: Time in market beats timing the market!
5-Step Performance Analysis Framework
1. Include ALL Income (Dividends, Spinoffs)
Ignoring dividends understates returns by 20-40% for income
stocks.
2. Use CAGR for Fair Time Comparisons
50% over 10 years (4.1% CAGR) underperforms 30% over 3 years
(9.1% CAGR).
3. Benchmark Against Market Indexes
40% return is poor if S&P 500 did 60% in same period.
4. Account for Taxes & Fees
20% pre-tax becomes ~15% after 25% capital gains tax + fees.
5. Adjust for Inflation (Real Returns)
10% nominal with 3% inflation = 7% real purchasing power
growth.
Common Mistakes
- Forgetting Dividends: Can understate returns by 20-40%
- Cherry-Picking Dates: Measuring peak-to-valley distorts reality
- Ignoring Risk: 80% tech gain ≠ 12% bond gain in risk-adjusted terms
Rule of 72: Quick Doubling Calculator
Divide 72 by your CAGR to estimate years to double:
- 6% CAGR → 12 years | 10% CAGR → 7.2 years | 12% CAGR → 6 years
Disclaimer
For educational purposes only. Does not consider taxes, fees, or inflation. Past performance ≠ future results. Consult a financial advisor.Quick Tips
- Include total dividends to measure real return.
- Use CAGR to compare investments across timeframes.
- Account for trading costs and taxes for accurate net returns.