Calculate the simple rate of return on an investment including income.
Please do not make financial decisions based on these results.
What is the Rate of Return Calculator?
Calculate the simple rate of return on an investment including income. To use the Rate of Return Calculator, enter initial value, current value, income received; it returns rate of return, total gain, and shows them instantly as you type.
Comparing returns
To judge past performance use the average return calculator and the ROI calculator. For projects with several cash flows, the IRR calculator gives a single comparable rate, and the payback period calculator shows how long it takes to recover the cost.
How to use the Rate of Return Calculator
- Enter your numbers. Start with Initial value ($), Current value ($), Income received ($). Use a rate of return you consider realistic; small changes compound into large differences. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Rate of return, and the cards below show Total gain. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Rate of Return Calculator using the default values shown in the calculator above:
Inputs
| Initial value ($) | 8,000 |
|---|---|
| Current value ($) | 9,300 |
| Income received ($) | 250 |
Results
| Rate of return | 19.38% |
|---|---|
| Total gain | $1,550.00 |
With these inputs the calculator returns Rate of return: 19.38%. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Initial value ($) from 8,000 to 9,600 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Rate of return | 19.38% | -0.52% | -102.7% |
| Total gain | $1,550.00 | -$50.00 | -103.2% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Rate of Return Calculator reports Rate of return and total gain. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Investment returns are not guaranteed. The result shows what the numbers you enter would produce, not what the market will do. It is for information, not financial, tax or legal advice.
Frequently asked questions
Is rate of return the same as ROI?
They are closely related; both compare gain with the amount invested.
Are investment returns guaranteed?
No. Real returns vary. Use these tools to compare scenarios, not to predict results.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
Related investment calculators
- Annualized Rate of Return Calculator
- Real Rate of Return Calculator
- Interest Rate Calculator
- CAGR Calculator (Compound Annual Growth Rate)
- Annualized Return Calculator
- Holding Period Return Calculator
- IRR Calculator
- Effective Interest Rate Calculator
- Investment Calculator
- ROI & Profit Margin Calculator
- Capital Gains Yield Calculator
- Simple Interest Calculator