Finance

Retirement Return on Investment Calculator (15 Years)

Calculate return on investment as a percentage. This retirement version uses a 15-year planning term as its starting point.

The Return figure is the total gain or loss on the amount invested, expressed as a percentage of that amount, over the full 15-year term: a positive figure means the final value is above the amount invested, a negative figure means it is below it, and because it is a total rather than a yearly rate, the same percentage means a slower yearly pace when it is spread over a longer term.

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 15 years. Using the page formula, return equals $15,000 minus $10,000, divided by $10,000, times 100, which is $5,000 divided by $10,000, times 100, which is 50.00 percent. That is the calculator's own result for these defaults.

Spreading that 50.00 percent total evenly over 15 years gives a simple average of 3.33 percent a year. That average is an illustration only, not the output of this page: it is not compounded and it is not an annualised return. It is shown so the same total can be judged fairly over different terms.

Who this term suits for a retirement saver: a saver with a decade and a half until retirement, for example someone building a fund for a retirement home deposit or for part-time work income in early retirement, where the yearly pace of the gain matters more than the headline total.

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 retirement 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.

Is 50 percent over 15 years still a good retirement return?
It is modest once spread out, averaging 3.33 percent a year on a simple basis, so compare it with fifteen years of inflation and with lower-risk retirement savings before calling it good.

Why is the yearly average lower at 15 years than at 10 years?
The total gain is the same $5,000, so a longer term means a smaller simple average each year. The page output is still 50.00 percent because only the invested amount and final value decide it.

Does a 15-year retirement ROI need an inflation check?
Yes. Over fifteen years even modest inflation can take a large share of a 50 percent total, so a retirement plan should compare the gain with what prices will do over the same period.

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