Investment Return Calculator
Calculate APY, APR, and CAGR for investments
Calculator
How to Use
Calculate investment returns (APY, APR, CAGR)
Enter initial investment
Input your starting investment amount
Enter final value
Input the ending value of your investment
Enter time period
Input the investment duration
View all returns
See APY, APR, CAGR, and total return
Investment Return Formulas
CAGR = (Final/Initial)^(1/years) - 1 APY = (1 + APR/n)^n - 1
CAGR gives equivalent annual return. APY converts APR based on compounding frequency (n = periods per year).
Frequently Asked Questions
APR (Annual Percentage Rate) is simple interest without compounding. APY (Annual Percentage Yield) includes compound interest. 10% APR with monthly compounding = 10.47% APY. Always compare APY to APY for accurate comparison.
CAGR (Compound Annual Growth Rate) is the smoothed annual return over a period. If $10,000 becomes $15,000 in 3 years, CAGR = (15000/10000)^(1/3) - 1 = 14.5%. CAGR ignores volatility and shows the equivalent steady growth rate.
Real Return ≈ Nominal Return - Inflation Rate. More accurately: (1 + Nominal) / (1 + Inflation) - 1. If you earn 8% and inflation is 3%, real return = 4.85%. Always consider real returns for long-term planning.
Time-weighted return measures investment performance regardless of cash flows - good for comparing fund managers. Money-weighted return (IRR) accounts for when you added/withdrew money - shows your actual experience. Use both for complete picture.