Finance

Holiday Return on Investment Calculator (20 Years)

Calculate return on investment as a percentage. This holiday version uses a 20-year planning term as its starting point.

The "Return" percentage shows the total gain or loss on the amount invested, as a percentage of that amount, so a positive percentage means the final value is higher than the amount invested, and a negative percentage means it is lower.

Formula

Return equals final value minus invested amount, divided by invested amount, times 100.

How it works

A positive return means the final value is higher than the amount invested.

Worked example

Amount invested $10,000, final value $15,000, term 20 years. First, the gain is $15,000 minus $10,000, which is $5,000. Using the page formula, return is $5,000 divided by $10,000, times 100, which is 50.00%. That is the total return over the whole 20 years, not a yearly rate.

As an illustration only, not the output of this page, the annualised rate behind the same result is about 2.05% a year, because $15,000 divided by $10,000 is 1.50, and the 20th root of 1.50 is about 1.0205. Over 20 years the yearly pace is only about a fifth of the 5-year pace for the same total gain. For holiday planning this is a long-horizon check: the fund may have survived two decades of price changes, but a slow yearly rate means it probably did not outrun travel inflation by much.

Who this term suits for a holiday saver: a saver planning retirement travel or a world trip about 20 years away, checking whether a fund built up over a working life will still pay for the journey planned, rather than a much smaller trip.

FAQs

What is a good ROI?
There is no single good figure. Compare returns over the same period and with the same risk before deciding.

Is this holiday calculator exact?
No, it is an estimate for planning only, based on the numbers you enter.

Are these figures financial advice?
No, they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.

Why is 2.05% a year the honest way to read a 20-year 50% return?
Because the 50.00% is the total over 20 years, not a yearly rate. As an illustration only, spreading the same doubling of growth over 20 years gives about 2.05% a year, which is the figure to compare with yearly rises in travel costs.

What fees or taxes could shrink a 20-year holiday return?
Account fees, taxes on gains, and currency costs on overseas spending. Over 20 years even small yearly charges add up, and none of them are counted in this page's simple formula.

Is a 20-year horizon too long to judge one holiday fund?
It is long enough that the original trip may no longer be the plan. Review the fund against the trip you actually want now, and against current prices, rather than judging it only by its 20-year total.

Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.