Portfolio Return Calculator
Want to know how much your investments have earned and what annual growth rate your portfolio has achieved? Our portfolio return calculator computes three key metrics: total return, CAGR (compound annual growth rate), and absolute profit in Polish zloty. Simply enter the portfolio value at the start and end of the period and the number of years.
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How we calculate portfolio return
The calculator computes three metrics: (1) Total return [%] = (ending_value − starting_value) / starting_value × 100, (2) CAGR [%] = (ending_value / starting_value)^(1/years) − 1 × 100, (3) Profit [PLN] = ending_value − starting_value. Results are rounded to two decimal places.
Example portfolio return calculation
A portfolio worth 10,000 PLN grew to 12,500 PLN over 3 years. Total return: (12,500 − 10,000) / 10,000 × 100% = 25%. CAGR: (12,500 / 10,000)^(1/3) − 1 = 7.72% per year. Profit: 2,500 PLN. This means the portfolio grew at an average rate of 7.72% per year.
Frequently asked questions about portfolio return
What is portfolio return?
Portfolio return is the percentage change in the value of an investment portfolio over a given period. It is calculated as: (ending value − starting value) / starting value × 100%. It tells the investor how much their wealth has grown or shrunk during the measured period.
What is CAGR and why does it matter?
CAGR (Compound Annual Growth Rate) is the rate at which an investment would have grown if it grew at a steady annual rate. It is useful for comparing investments over different time horizons because it normalises returns to a per-year basis.
How is CAGR calculated?
CAGR formula: CAGR = (ending_value / starting_value)^(1/n) − 1, where n is the number of years. For example, growth from 10,000 to 12,500 over 3 years: CAGR = (12500/10000)^(1/3) − 1 ≈ 7.72% per year.
What is the difference between total return and CAGR?
Total return measures the overall percentage gain or loss over the entire period, regardless of its length. CAGR distributes that result into equal annual increments, enabling comparison of investments with different time frames.
Does the calculator account for inflation?
No — the calculator computes nominal return. To obtain the real return, subtract the annual inflation rate from the CAGR. For example, a CAGR of 7% with 3% inflation gives a real return of approximately 4% per year.
What does a negative CAGR mean?
A negative CAGR means the portfolio lost value over the analysed period. For example, CAGR = −5% indicates the portfolio shrank by an average of 5% per year. The more negative the CAGR, the greater the loss.
Can I use this calculator to evaluate a mutual fund?
Yes. Enter the fund's NAV (net asset value per unit) at the start and end of your holding period and the number of years. The calculator will return the total return and CAGR, making it easy to compare against a benchmark or other funds.
How do I use the calculator for a stock portfolio?
Enter the market value of the portfolio at purchase as the starting value and the current valuation as the ending value. Note that the calculator does not include dividends or commissions — for a complete picture, add received dividends to the ending value.
What is the Rule of 72 and how does it relate to CAGR?
The Rule of 72 states that capital will approximately double in 72 / CAGR years. For example, at CAGR = 8% doubling takes about 9 years. This is a quick approximation. The portfolio return calculator lets you verify the exact outcome for any time frame.
What are typical annual returns for different asset classes?
Historical long-term nominal returns: global developed-market equities approximately 8–10% per year, government bonds approximately 2–4%, gold approximately 4–6%, cash/deposits approximately 1–3%. Past performance does not guarantee future results — every investment carries risk.
The calculator computes nominal return and does not account for inflation, taxes, brokerage commissions, or dividends. Results are for informational purposes only and do not constitute investment advice. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.
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