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FinToolSuite
Updated May 14, 2026 · Investing · Educational use only ·

Total Return Calculator

Portfolio total return.

Calculate total return on your portfolio including reinvested dividends, contributions, and CAGR across any investment 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 shows the compound annual growth rate (CAGR) of your investment, removing the distortion caused by deposits made during the holding period. The result is expressed as a percentage return per year. The calculation uses your starting portfolio value, ending value, total dividends received, and the amount of contributions added to arrive at a time-weighted figure. This output helps illustrate how your portfolio performed independently of your own cash flows. The calculator assumes dividends were retained in the portfolio and does not account for fees, taxes, or market timing effects.


Enter Values

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Formula Used
End value
Start
Contributions
Dividends

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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%. Compare to S&P 500 long-term return ~10%. Strong portfolio performance if benchmarks are similar.

Many investors miss dividends in performance calculations - massive understatement. S&P 500 1990-2020: 7.2% price return vs 9.9% total return. Dividends added 2.7%/year compounded. Reinvested dividends turn into 75% of long-term wealth from equity investing. Always include dividends in performance calculations.

A worked example

Try 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

Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. The number represents 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%

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?
Always compare to relevant benchmark. Equities: FTSE All-Share.: S&P 500. Mixed portfolio: blended benchmark (60/40 stocks/bonds). Outperforming benchmark by 1-2%/year over decades is exceptional. Most active investors underperform after fees.

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