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Rate of Return Calculator UK
Rate of Return Calculator UK
Calculate Return Rate
CAGR & Annualised
£
Starting value of your investment.
£
Ending value of your investment.
Number of years you held the investment.
£
Any additional amounts invested during the period.
CAGR: Compound Annual Growth Rate measures the annual return rate.
Example £10,000 → £15,000 over 5 years = 8.45% CAGR
Rate of Return Analysis
Enter your investment details, then click Calculate Rate of Return.
What Is Rate of Return?
The rate of return is the percentage gain or loss on an investment over a specific period. This rate of return calculator UK calculates the annualised return (CAGR) and total return of your investments.
How to Use the Rate of Return Calculator
Enter your initial value, final value, years held and optionally any additional contributions. Click Calculate Rate of Return to see your CAGR, total return and annualised return.
How Rate of Return Is Calculated
Total Return = (Final Value − Initial Value) ÷ Initial Value × 100
CAGR = ((Final Value ÷ Initial Value)^(1/years) − 1) × 100
CAGR = ((Final Value ÷ Initial Value)^(1/years) − 1) × 100
Rate of Return Example
Example: £10,000 invested, £15,000 final value, 5 years, £2,000 additional contributions
- Total invested: £10,000 + £2,000 = £12,000
- Total return: (£15,000 − £12,000) ÷ £12,000 × 100 = 25%
- CAGR: ((£15,000 ÷ £12,000)^(1/5) − 1) × 100 = 4.56%
Understanding Rate of Return
- Total Return: Overall percentage gain/loss
- CAGR: Average annual return rate
- Positive Return: Investment gained value
- Negative Return: Investment lost value
- Zero Return: Investment broke even
Good Rate of Return Benchmarks
- Savings Account: 0.5-4%
- Bonds: 2-5%
- UK Stocks (FTSE 100): 5-7%
- Global Stocks: 7-10%
- Property: 4-8%
- Startups: 20%+ (high risk)
Common Rate of Return Mistakes
- Not including additional contributions — they affect the return rate
- Ignoring time — compare annualised returns for different periods
- Not considering risk — higher returns often mean higher risk
- Ignoring inflation — real return is lower than nominal
- Forgetting fees — fees reduce your returns
Important: This calculator provides estimates only. Past performance does not guarantee future results. Always seek professional financial advice.
Important Assumptions and Limitations
- Does not account for inflation
- Does not include fees or charges
- Does not account for taxes on returns
- Assumes contributions are made at the start of the period
- Results are estimates, not guaranteed
Frequently Asked Questions
What is rate of return?
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What is CAGR?
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How is CAGR calculated?
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What is a good rate of return?
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What is the difference between total return and annualised return?
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Should I include inflation in rate of return calculations?
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Are the results exact?
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For investment planning, visit our Investment Calculator UK. For ROI, try our ROI Calculator UK.