Investment Return Calculator — Measure What Your Portfolio Is Actually Earning
Calculate absolute and annualized returns on any investment. Compare stocks, mutual funds, FDs, and real estate on a level playing field.
Saying "my investment went up 80%" sounds great. But if that took 12 years, the annualized return is just 5% — which is barely above inflation. Context is everything with investment returns, and the CalcHub Investment Return Calculator gives you the right context by calculating both absolute returns and CAGR (Compound Annual Growth Rate).
Absolute Return vs CAGR
Absolute return is the simple percentage gain or loss from start to finish. CAGR is the annualized equivalent — the steady rate that would produce the same result if compounding continuously. It lets you compare investments held for different durations on the same scale.Formula: CAGR = (Final Value / Initial Value)^(1/years) - 1
How to Use the Calculator
- Initial investment amount — what you put in
- Current/final value — what it's worth now (or was at exit)
- Investment period — years and months held
- Calculate — see absolute return%, CAGR, and net profit in currency
Comparing Common Investments (₹1,00,000 invested for 10 years)
| Investment | Final Value | Absolute Return | CAGR |
|---|---|---|---|
| Fixed deposit (6.5%) | ₹1,87,700 | 87.7% | 6.5% |
| PPF (7.1%) | ₹1,99,100 | 99.1% | 7.1% |
| Large-cap equity fund | ₹2,59,000 | 159% | ~10% |
| Nifty 50 index fund | ₹2,70,000 | 170% | ~10.4% |
| Real estate (moderate) | ₹2,20,000 | 120% | ~8.2% |
A Note on Dividends and Rental Income
The calculator above shows capital appreciation only. For complete return calculations:
- Stocks/mutual funds: Include dividends received in your final value
- Real estate: Add rental income received over the holding period to your final value before calculating
- FDs/bonds: The interest is often already reflected in the final value
When CAGR Can Be Misleading
CAGR shows a smooth average but hides volatility. An investment that dropped 40% in year 3 and recovered by year 10 will show the same CAGR as one that grew steadily — but they felt very different to hold. When evaluating investments, look at:
- Maximum drawdown — how far it fell at its worst
- Year-by-year performance — was it consistent?
- Risk-adjusted return — was the return worth the ride?
Inflation-Adjusted Returns
At 5% inflation, a 7% nominal return is only 1.9% real return. Calculate your real CAGR by: (1 + nominal rate) / (1 + inflation rate) - 1
For most middle-class investors in India, beating inflation by 3-4% annually is a solid, realistic goal for the core portfolio.
How do I calculate returns on a SIP or multiple investments?
CAGR works for lump sum investments. For SIPs or multiple irregular investments, the correct metric is XIRR (Extended Internal Rate of Return), which accounts for the timing of each cash flow. Many investment platforms show XIRR in your portfolio dashboard.
My mutual fund statement shows "absolute" but not CAGR — which should I trust?
For investments held under 1 year, absolute return is standard (CAGR doesn't mean much for short periods). For anything over a year, insist on CAGR — absolute return over 3+ years inflates the number and can mislead.
Is 15% CAGR realistic for equity?
Long-term historical returns for Nifty 50 have been 11-14% over 15-20 year periods. 15% is at the high end — achievable in certain funds but not a safe planning assumption. Using 10-12% for equity-heavy portfolios is more conservative and appropriate.