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Absolute Return Calculator

Measure the total (absolute) return on an investment from its starting and ending value, plus the gain in dollars and the annualized rate.

Initial investment

Final value

Holding period

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How it works

Absolute return % = (final − initial) ÷ initial × 100 · Annualized (CAGR) = (final ÷ initial)^(1 ÷ years) − 1

Absolute return is the total percentage change from what you put in to what you ended with — no reference to a benchmark and no adjustment for time. It answers "how much did this grow?" in the simplest terms. Because it ignores the holding period, a 50% absolute return could be superb over one year or unremarkable over ten; the annualized (CAGR) line restates the same result as a steady yearly rate so returns over different periods can be compared fairly.

Worked example

An investment that grows from $10,000 to $15,000 has an absolute return of (15,000 − 10,000) ÷ 10,000 × 100 = 50%, a $5,000 gain. If that took 1 year, the annualized return is (15,000 ÷ 10,000)^(1÷1) − 1 = 50% too; over 3 years it would be about 14.5% a year.

Frequently asked questions

What is absolute return?

It is the raw total return of an investment over its holding period, measured only against your own starting amount rather than a market index or a target. It tells you the size of the gain, not whether it beat an alternative.

How does absolute return differ from annualized return?

Absolute return is the whole-period change; annualized return spreads that over the years as a compound yearly rate. Use the absolute figure for the headline gain and the annualized figure to compare investments held for different lengths of time.

Why can annualized return not be shown for some inputs?

Annualizing needs a holding period above zero and a positive ending value. With a 0-year period there is no time to spread the return over, and a $0 ending value cannot be raised to a fractional power meaningfully.

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Educational estimate, not investment, tax or financial advice. Returns are never guaranteed and past performance does not predict the future. Confirm figures with a licensed advisor.