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AussieCalc

Investment Return Calculator

Calculate the total return and annualised CAGR of any investment: Shares, ETFs, property, or managed funds.

When to use

When you want to calculate the actual return on an investment you've already made, or compare the performance of different assets.

Who it's for

Investors reviewing the performance of shares, ETFs, property, managed funds, or any other asset over any time period.

What you'll need

The initial purchase value, final value, number of years held, and optionally any dividends or distributions received.

$

How much you invested at the start.

$

What your investment is worth today (or at the end of the period).

$

Total extra money added during the period. Enter 0 if none.

years

How long you held the investment. Decimals are allowed (e.g. 2.5).

CAGR treats additional contributions as invested from the start, a simplification that slightly overstates annualised return when contributions were spread over time. General guidance only — not financial advice.

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Investment returns

What is CAGR?

Compound Annual Growth Rate (CAGR) is the annualised rate at which an investment would have grown if it compounded at a steady rate each year. It's a more useful benchmark than total return because it accounts for time; a 50% gain over 2 years is very different from the same gain over 10 years. CAGR lets you compare investments held for different durations on an equal footing.

CAGR vs simple average return

A simple average return adds up yearly returns and divides by years, which can mislead. If an investment falls 50% then rises 100%, the simple average is 25%, but you only broke even. CAGR captures the actual compounding path and always reflects the real outcome. For evaluating any multi-year investment, CAGR is the right measure.

Worked examples

ASX ETF held 6 years — CAGR calculation
Sam invested $5,000 in VAS (Vanguard Australian Shares ETF) in June 2019. With dividends reinvested and no additional contributions, the position was worth $9,200 by June 2025. Total return: 84% ($4,200 profit). Annualised CAGR: approximately 10.7% per annum, broadly in line with the ASX 200's long-run historical average including dividends. Enter $5,000 initial, $9,200 final value, 0 contributions, 6 years to replicate in the calculator.
Investment property capital growth over 10 years
An investment property purchased for $520,000 in 2015 is estimated at $840,000 in 2025, a $320,000 capital gain before costs and CGT. No major renovations were carried out. Total return: 61.5%. CAGR: approximately 4.9% per annum. This covers capital appreciation only, rental yield (typically 3–5% gross) and depreciation deductions significantly affect the real-world after-tax outcome. Enter $520,000 initial, $840,000 final value, 0 contributions, 10 years.
Managed fund with additional lump-sum contributions
Jessica started a balanced managed fund with $10,000 in 2017 and added a further $20,000 in lump-sum contributions over the following 8 years. Her balance in 2025: $50,000. Total invested: $30,000. Profit: $20,000. Simplified CAGR based on total amount invested: approximately 6.6% per annum. Because contributions were made at different times, a dollar-weighted return (MWRR) would give a more precise picture, the simplified CAGR understates the return on the original $10,000 and overstates it on later contributions.

Frequently asked questions

What is a good CAGR for Australian investments?
The ASX 200 has delivered a CAGR of roughly 10% per year over the long run (including dividends, before inflation). Australian residential property has averaged 6–8% CAGR over the past few decades, though this varies significantly by location. A CAGR consistently above 10% per year is considered excellent for a diversified portfolio.
How do I calculate CAGR manually?
CAGR = (Final Value ÷ Initial Value) ^ (1 ÷ Years) − 1. For example, $10,000 growing to $18,000 over 5 years: (18,000 ÷ 10,000) ^ (1 ÷ 5) − 1 = 1.8 ^ 0.2 − 1 ≈ 0.1247, or 12.47% per year.
How does this calculator handle additional contributions?
This calculator treats additional contributions as if they were all invested from the start, a simplification that slightly overstates CAGR when contributions were actually spread over time. For a precise return when you've made regular contributions, you'd need an IRR (Internal Rate of Return) calculation, which accounts for the timing of each cash flow.
What is the difference between total return and annualised return?
Total return is the simple percentage gain from start to finish, regardless of how long it took. Annualised return (CAGR) converts that total gain into a per-year figure. A 100% total return sounds impressive, but if it took 20 years it's only 3.5% per year, which barely beats inflation.
Can I use this calculator for property returns?
Yes. Enter your purchase price as the initial investment, estimated current market value as the final value, and any renovation costs or capital improvements as additional contributions. Keep in mind the result does not account for rental income, mortgage costs, stamp duty, or CGT. It is a simplified capital growth return only.
What is the difference between a nominal and a real investment return?
A nominal return is the raw percentage your investment grew, without adjusting for inflation. A real return strips out inflation to show how much your actual purchasing power increased. If your portfolio grew 8% in a year where inflation was 3%, your real return was approximately 5%. Over 20 years, a 7% nominal return with 2.5% average inflation translates to a real return of roughly 4.4% per year, meaning each dollar invested roughly doubles in real purchasing power rather than quadrupling in nominal terms. When planning for retirement, check whether your savings target is stated in today's dollars (real) or future dollars (nominal); confusing the two can significantly underestimate how much you need to accumulate.

How this calculator works

The calculator has two modes. In return calculator mode, you enter what you paid, what it is worth now, and how long you held it, the calculator works out the total return percentage and the annualised return (CAGR). CAGR normalises returns across different holding periods, making it possible to compare investments held for different lengths of time on an equal footing. In future value mode, you enter a starting amount and a return rate, the calculator projects what it grows to over your chosen period.

The return rate you enter should be a total return, that is, price growth plus any income (dividends, distributions) reinvested. For context, the ASX 200 has delivered approximately 9–10% per year in total return over the long run, including fully franked dividends. The result is nominal, meaning inflation is not subtracted. At 3% annual inflation, a nominal 9% return delivers approximately 6% in real (purchasing power) terms.

This tool is best for modelling a single lump-sum investment (an inheritance, a property settlement, or an investment already held). For modelling regular contributions over time, the ETF Growth Calculator or Compound Interest Calculator is more appropriate.

Methodology

  • Assumptions: Lump-sum investment with no further contributions; constant annual return rate; nominal return (not inflation-adjusted).
  • Calculation: Future value = initial investment × (1 + rate/100)^years; CAGR (from actual figures) = (end value / start value)^(1/years) − 1.
  • Limitations: Does not model tax on returns, brokerage costs, or portfolio volatility; past returns do not predict future performance.

Sources

Last updated: June 2026

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