📊 Investment Return Calculator
Calculate CAGR, TWR, MWR, Sharpe ratio, max drawdown, and compare against benchmarks.
Parameters
Short <1yr, Long ≥1yr. Rates vary by country (US 15-20%, Germany 26%, Singapore 0%)
CAGR (Annualized)
12.47%
Total Return 80% · Final $18,000
📈 Benchmark Comparison
S&P 500
+18.95%
NASDAQ 100
-4.24%
FTSE 100
+39.74%
Nikkei 225
+46.18%
CSI 300
+33.07%
Investment Timeline
🎲 Monte Carlo Simulation
Best Case (95th)
$116,753
Median
$26,051
Worst Case (5th)
$5,813
Annualized Rolling Returns
1yr
80%
3yr
21.64%
5yr
12.47%
How Investment Return Works
CAGR
CAGR = (FV / PV)^(1/n) - 1
Compound Annual Growth Rate
TWR
TWR = ∏(1 + Sub-period Return) - 1
Eliminates impact of cash flows
Sharpe
Sharpe = (Return - Risk Free) / StdDev
Risk-adjusted return
Example
• $10,000 invested for 5 years grows to $18,000:
• CAGR = (18000/10000)^(1/5) - 1 = 12.47%
• With 2% dividends reinvested, effective return ~14.5%
❓ FAQ
What is a good investment return rate?＋
The S&P 500 historical average is ~10% annually (7% after inflation). A good return depends on your goals, risk tolerance, and time horizon.
What is CAGR and how is it calculated?＋
CAGR (Compound Annual Growth Rate) = (Final Value / Initial Value)^(1/Years) - 1. It smooths out yearly fluctuations to show the average annual growth rate.
What is Sharpe ratio and why does it matter?＋
Sharpe ratio measures risk-adjusted return. Higher is better. >1 is good, >2 is excellent. It helps compare investments with different risk levels.
What is maximum drawdown?＋
Max drawdown is the largest peak-to-trough decline. A 50% drawdown requires a 100% gain to recover. It measures worst-case risk.
Should I compare my returns to a benchmark?＋
Yes, comparing to the S&P 500 or relevant index shows if you're beating the market. Most active investors underperform their benchmark.
How do dividends affect total return?＋
Dividends contribute significantly to long-term returns. Reinvested dividends account for ~40% of the S&P 500's total return since 1930.
What is the difference between TWR and MWR?＋
TWR (Time-Weighted Return) removes the effect of cash flows, good for comparing managers. MWR (Money-Weighted Return) reflects your personal experience.
How do taxes affect investment returns?＋
Short-term gains (held <1 year) are taxed as income. Long-term gains are taxed at 0-20%. Tax-efficient investing can boost after-tax returns significantly.