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Updated 2026-05-14 · Investing · Educational use only ·
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Total Return Calculator

Portfolio total return.

Calculate the annualised total return on your portfolio from starting and ending value, dividends received, and contributions over any period.

What this tool does

This calculator estimates your portfolio's annualised total return by accounting for the value gained or lost, plus dividends earned, minus new money you added over a specified period. It expresses the result as an annualised total return, after stripping out the new money you added during the holding period. The result is shown as a percentage return per year. The calculation uses your starting portfolio value, ending value, total dividends received, and the contributions added to arrive at a simplified annualised figure. This helps illustrate how the portfolio performed after setting aside your own cash flows, though it is a simplified measure rather than a true time-weighted return. The calculator treats dividends as income received during the period, counted on top of the change in portfolio value, and does not account for fees, taxes, or market timing effects.

Quick answer: with the default values, the result is 9.86% (Annualized Return). Adjust the values below for your own figures.


Enter Values

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Formula Used
End value
Start
Contributions
Dividends

Disclaimer

Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.

Total return = capital appreciation + dividends/income, annualised. 10k starting + 2k dividends + ending value 15k - 1k contributions = 6k total return. On 10k starting: 60% total return. Over 5 years: 9.86% annualised. Includes both price gain and income for true performance measurement.

10k start, 15k end, 2k dividends, 1k contributions, 5 years. Total return: 15k - 10k - 1k + 2k = 6k. Total return %: 60%. Annualised: 9.86%. The result can be compared to a relevant benchmark, such as a broad equity index, over the same period.

Leaving dividends out of a performance calculation can understate returns, because income is part of total return alongside price change. Historically, dividend income has formed a meaningful share of long-term equity returns. Including dividends gives a fuller picture of performance.

A worked example

With the defaults: starting portfolio value of 10,000, ending portfolio value of 15,000, dividends received of 2,000, contributions added of 1,000. The tool returns 9.86%. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.

What moves the number most

The result responds to Starting Portfolio Value, Ending Portfolio Value, Dividends Received, Contributions Added, and Years. Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.

The formula behind this

Total return = end - start - contributions + dividends. Total return % = TR ÷ start × 100. Annualized = (1 + TR%)^(1/years) - 1. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

Using this well

What this doesn't capture

This is a simplified model that holds its assumptions constant. Real outcomes vary with market conditions, costs, taxes, and timing, so the figure is best read as one scenario rather than a forecast.

Example Scenario

(£15,000 - £10,000 - £1,000 + £2,000) ÷ £10,000 over 5y = 9.86%.

Inputs

Starting Portfolio Value:£10,000
Ending Portfolio Value:£15,000
Dividends Received:£2,000
Contributions Added:£1,000
Years:5
Expected Result9.86%
Expected Result breakdown
Total Return %60.00%
Total Return £$6,000.00
Dividends Received$2,000.00
Period5 years

This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.

Sources & Methodology

Methodology

This calculator computes total return by taking the ending portfolio value, subtracting the starting value and any contributions made, then adding back dividends received. This net figure is divided by the starting value and multiplied by 100 to express the result as a percentage. The model assumes all contributions occur at the beginning and are treated uniformly; it does not account for the timing of individual deposits or withdrawals during the period. Dividends are assumed to have been received in full without tax implications. The calculation does not model fees, market volatility, or the sequence in which returns occurred. Annualized return applies the compound growth formula to express the total return as an equivalent annual rate over the specified period.

Frequently Asked Questions

Why subtract contributions?
Contributions are new money, not investment returns. Including them inflates apparent return. 10k start growing to 15k = 50% return. Same start with 5k contributions reaching 15k = 0% return on the original capital. Must subtract contributions for true performance.
Time-weighted vs money-weighted?
Time-weighted: pure investment performance, ignores cash flow timing. Money-weighted (IRR): includes timing of contributions/withdrawals. Time-weighted compares fund manager skill; money-weighted shows actual investor experience. Most retail tools use simplified version (this calculator).
Include taxes?
This calculator pre-tax. For after-tax: deduct dividend tax + capital gains tax on realized gains. Different tax wrappers (tax-advantaged retirement account): no tax. Taxable accounts: 15-30% tax drag typical. After-tax return often 70-85% of pre-tax for equity portfolios.
Benchmark comparison?
A relevant benchmark gives the comparison meaning. For equities, a broad national or global stock index is common; for a mixed portfolio, a blended benchmark (such as 60/40 stocks/bonds) fits better. Beating a benchmark by 1-2% a year over decades is uncommon, and after fees many active investors trail their benchmark.

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