Stock Return / CAGR Calculator

Total return and compound annual growth rate for a stock holding, including dividends.

$10,000.00 growing to $25,000.00 plus $500.00 in dividends over 8 years is a 155.00% total return (12.41% annualized).

CAGR (Annualized)

12.41%

Total Return

155.00%

Total Gain

$15,500.00

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Total return tells you how much you made on a stock, in dollars and as a percentage, but it doesn't account for how long it took. CAGR (compound annual growth rate) converts a multi-year gain into a single annualized rate, the number that actually lets you compare a holding period of 3 years against one of 15 years, or against a savings account's stated interest rate.

This calculator handles both, and includes an optional field for dividends received, so a stock's total return properly reflects income as well as price appreciation.

How does this calculator work?

Enter what you initially invested, what the position is worth now (or was worth when you sold), how many years you held it, and any dividends collected along the way.

The calculator computes total return as a simple percentage gain, and CAGR as the single constant annual rate that would turn the initial investment into the ending value (plus dividends) over that many years.

CAGR is just an annualized compound rate, which is why the same number can be recovered by solving for the rate of return between a start and end value. Reinvesting the dividends along the way compounds the result further, the effect the reinvestment projection isolates, and judging a return per unit of risk is the job of the Sharpe ratio.

Worked example

You invested $10,000, it grew to $25,000 over 8 years, and you collected $500 in dividends along the way.

Initial investment: $10,000
Ending value plus dividends: $25,500
Total return: 155%
CAGR: 12.41%

How the numbers work

The 155% total return is straightforward: you ended up with $15,500 more than you started with, on a $10,000 base.

The 12.41% CAGR is the annual rate that compounds $10,000 to $25,500 over exactly 8 years: check it by computing $10,000 × 1.1241^8, which lands almost exactly on $25,500.

CAGR is the number to use when comparing investments held for different lengths of time or against an annualized benchmark like an index's historical average return. Total return alone can make a slow multi-decade gain look similar to a fast multi-year one, even though their annualized performance is very different.

Stock Return / CAGR Calculator glossary

Total Return: The overall percentage gain or loss on an investment over the full holding period, including both price change and any dividends received.
CAGR (Compound Annual Growth Rate): The single constant annual growth rate that would produce the same total change in value over the holding period, accounting for compounding.

Stock Return / CAGR Calculator FAQs

Why isn't CAGR the same as the average of yearly returns?+

CAGR accounts for compounding, while a simple average of yearly returns doesn't. A stock that goes up 50% one year and down 33% the next has a simple average return around 8.5%, but actually ends up exactly where it started, a 0% CAGR, since the compounding effect of gains and losses isn't symmetric.

Should I include dividends in the calculation?+

Yes, if you want a true total-return figure. Ignoring dividends understates the actual return, especially for dividend-paying stocks held over many years, where reinvested or collected dividends can be a meaningful part of overall performance.

What if I sold in multiple transactions rather than all at once?+

This calculator handles a single initial investment and a single ending value. For multiple purchases or partial sales at different times, a more detailed cash-flow-based return calculation (like an IRR) would be more accurate.