Finance

Personal Return on Investment Calculator (20 Years)

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

The Return figure is the total gain or loss over the full 20 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 20 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 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. A 20-year horizon makes the yearly view essential: 50.00% sounds large until it is spread over two decades, and any fees or tax taken along the way would cut it further.

Who this term suits for a person: A 20-year term suits a person judging a pension-style holding, for example a fund started at 25 and checked at 45, or a long-term savings plan that survived several market falls. The honest check is whether about 2.05% a year, with the risk actually carried, was a good use of $10,000 for 20 years, or whether a different mix would have served the same goal better.

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 is 2.05% a year the honest way to read a 20-year 50% return?
Because 50.00% is the total over 20 years, and spreading it evenly gives about 2.05% a year. Quoting only 50.00% makes a 20-year holding sound far stronger than it was. The yearly figure also makes it possible to ask the real question: was about 2.05% a year, with the risk carried, a fair reward for locking money away for 20 years?

What fees or taxes could shrink a 20-year ROI?
Any yearly charge, dealing cost, or tax on gains or income would cut the final value, and this page does not include them unless you enter a final value that already reflects them. Over 20 years even a small yearly fee compounds into a large reduction, so the calculator result should be treated as a before-costs figure unless the final value entered is already net.

Is a 20-year horizon too long to judge one investment?
It can be, if the investment, the goal, or the person changed during those 20 years. A fund bought at 25 may no longer fit at 45, and a single start-to-end figure hides every fall and recovery in between. Use the 20-year ROI as a summary, then review the holding itself, not just the percentage.

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