What is annualized return?

Annualized return converts a total return over any period into an equivalent annual rate, allowing comparison between investments held for different durations.

Is 7% a good annual return?

The S&P 500 has historically returned about 10% annually (7% after inflation). A 7% real return is considered excellent for long-term investments.

How do I account for fees?

Subtract investment fees from your final value before calculating returns. Even small fees (0.5-1%) can significantly reduce long-term returns.

What about taxes on returns?

This calculator shows pre-tax returns. Long-term capital gains (held 1+ year) are taxed at lower rates than short-term gains.

What is annualized return?

Annualized return converts a total return over any period into an equivalent annual rate, allowing comparison between investments held for different durations.

Is 7% a good annual return?

The S&P 500 has historically returned about 10% annually (7% after inflation). A 7% real return is considered excellent for long-term investments.

How do I account for fees?

Subtract investment fees from your final value before calculating returns. Even small fees (0.5-1%) can significantly reduce long-term returns.

What about taxes on returns?

This calculator shows pre-tax returns. Long-term capital gains (held 1+ year) are taxed at lower rates than short-term gains.

Educational Tool — Estimates for educational purposes only. Not financial advice.Disclaimer

Behavioral Insight

Multiple round numbers detected (2 inputs). Real financial figures are rarely this clean. Using exact figures from your accounts, quotes, or statements produces more accurate projections.

Understanding your investment returns helps you make informed decisions. This calculator determines your total return, percentage gain, and annualized return to compare performance across different investments and time periods.

Investment Return Calculator

Calculate total and annualized returns on your investments.

February 2026 (market data)

Initial Investment

Current/Final Value

Holding Period

Your Results

Total Return

$5,000.00

Total Return %

50.00%

Annualized Return

$14.47

Final Value

$15,000.00

Visualization

Wally's Analysis

AI-powered interpretation of your results

AI Summary

Key Insights

Optimization

What-If Scenarios

Return Summary

+$5,000

Total Return

+50%

Total Return %

14.47%

Annualized Return

5 yr

Doubling Time

Real vs Nominal Returns

Nominal (Before Inflation)

14.47%/yr

Final: $15,000

Real (After 3% Inflation)

11.47%/yr

Purchasing Power: $13,727

Benchmark Comparison

If you invested $10,000 for 3 years in different assets:

S&P 500 (10.3%)$13,419

10.3% annual return

Bonds (5.0%)$11,576

5% annual return

Savings (4.5%)$11,412

4.5% annual return

Inflation (3.0%)$10,927

3% annual return

Your Investment$15,000

14.5% annual return

Growth Projection at 14.47% Annual Return

If your investment continues at the same rate:

Years	Projected Value	Total Growth	Growth %
1 yr	$11,447	+$1,447	+14%
3 yr (current)	$15,000	+$5,000	+50%
5 yr	$19,656	+$9,656	+97%
10 yr	$38,634	+$28,634	+286%
15 yr	$75,938	+$65,938	+659%
20 yr	$149,259	+$139,259	+1393%
25 yr	$293,378	+$283,378	+2834%
30 yr	$576,650	+$566,650	+5667%

Investment Return Insights

✓

Your 14.47% annualized return beats the S&P 500 historical average of ~10.3%.

ℹ

Rule of 72: Divide 72 by your annual return to estimate how many years to double your money. At 14.47%, your money doubles every ~5 years.

ℹ

Past performance does not guarantee future results. Always diversify and consider your risk tolerance.

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AI Disclosure

Wally's Analysis uses GPT-4o-mini for educational interpretations. AI responses are not personalized financial advice and may be inaccurate. All core calculations are deterministic — AI only interprets results.AI Transparency →

Accuracy Commitment

Industry-standard formulas vetted against IRS, SSA, BLS, CFPB. Client-side calculations. Regularly updated.

This calculator provides estimates for informational purposes only and does not constitute financial, tax, or legal advice. Consult a licensed professional before making financial decisions.

Updated: February 2026 (market data) · Methodology

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