Finance

Personal Return on Investment Calculator (10 Years)

Calculate return on investment as a percentage. This personal version uses a 10-year planning term as its starting point.

The Return figure is the total gain or loss over the full 10 years, shown as a percentage of the amount invested. A positive Return means the final value is higher than the amount invested, a negative Return means it is lower, and a Return of 0.00% means the money came back unchanged. Because it covers the whole 10 years, it is not a yearly rate, so compare it only with returns measured over the same length of time and with similar risk.

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 10 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 10 years, not a yearly rate. As an illustration only, not the output of this page, the annualised rate behind the same result is about 4.14% a year, because $15,000 divided by $10,000 is 1.50, and the 10th root of 1.50 is about 1.0414. The same 50.00% headline therefore means much less per year than it did over 5 years, and that yearly view is the fair way to compare a 10-year holding with a shorter one.

Who this term suits for a person: A 10-year term suits a person checking a medium-term pot, for example a fund started when a child began school and reviewed before college costs arrive, or a savings plan held through a full job cycle. The test is not the 50.00% headline alone, but whether about 4.14% a year was worth the risk and the wait, after fees and tax.

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 personal 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 does the same 50.00% look smaller over 10 years?
Because the same $5,000 gain is spread over twice as long. Over 5 years it works out at about 8.45% a year, but over 10 years it is only about 4.14% a year. Total return hides time, so a longer holding always needs the yearly view before it can be called good or bad.

Is 4.14% a year enough to beat rising prices over 10 years?
Only if prices rose by less than about 4.14% a year on average over the same 10 years. If they rose faster, the $15,000 would buy less than the original $10,000 did, even though the calculator shows a 50.00% gain. This page does not adjust for rising prices, so that check must be done separately.

How should I compare a 10-year ROI with a 5-year ROI?
Never compare the 50.00% headlines directly. Convert each to its yearly rate, check that both cover the same kind of risk, and allow for fees and tax in both cases. A 50.00% return over 5 years and a 50.00% return over 10 years are very different results, even though the calculator prints the same percentage.

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