Rate of Return Calculator
Results are estimates based on the values you enter. Recheck your inputs and assumptions before using the output for decisions.
Calculate rate of return from beginning value, ending value, and income received.
Rate of Return Calculator
Free online rate of return calculator to estimate total return from a beginning value, ending value, and income received during the investment period. This calculator is useful for investors, finance students, business owners, traders, savers, and anyone who wants to measure how much an investment gained or lost over a period. Rate of return is one of the most common performance measures in finance because it combines both price change and income earned, such as dividends, interest, rent, or distributions. That makes it broader than a simple price-only return figure.
This calculator uses three main inputs. Beginning value means the starting investment amount or purchase value. Ending value means the value at the end of the holding period. Income received means any cash income earned during the period, such as dividends or interest. Once those values are entered, the calculator shows rate of return, capital gain, income yield, and total gain. These outputs help separate return into price movement and income contribution, making the result easier to understand and explain.
The formula of rate of return
Capital gain = Ending value – Beginning value
Total gain = Capital gain + Income received
Income yield = Income received / Beginning value
Rate of return = (Ending value – Beginning value + Income received) / Beginning value
Here beginning value means the initial amount invested, ending value means the value at the end of the period, income received means cash earned during the period, capital gain means the price change of the investment, total gain means the combined gain or loss including income, and rate of return means the total gain relative to the original investment.
Solved Example
Example 1: Find the rate of return if beginning value is $10,000, ending value is $11,200, and income received is $400.
Solve: Capital gain = 11200 – 10000 = $1,200
Total gain = 1200 + 400 = $1,600
Income yield = 400 / 10000 = 4.00%
Rate of return = 1600 / 10000 = 16.00%
Example 2: Find the result if beginning value is $25,000, ending value is $26,000, and income received is $750.
Solve: Capital gain = 26000 – 25000 = $1,000
Total gain = 1000 + 750 = $1,750
Income yield = 750 / 25000 = 3.00%
Rate of return = 1750 / 25000 = 7.00%
Example 3: Find the result if beginning value is $15,000, ending value is $14,100, and income received is $600.
Solve: Capital gain = 14100 – 15000 = -$900
Total gain = -900 + 600 = -$300
Income yield = 600 / 15000 = 4.00%
Rate of return = -300 / 15000 = -2.00%
Table of rate of return calculator
| Beginning Value | Ending Value | Income | Rate of Return |
|---|---|---|---|
| $10,000 | $11,200 | $400 | 16.00% |
| $15,000 | $14,100 | $600 | -2.00% |
| $25,000 | $26,000 | $750 | 7.00% |
| $40,000 | $45,000 | $1,000 | 15.00% |
How to use this rate of return calculator
Enter the beginning value in the proper input field. After that, enter the ending value and the income received during the period. Then click the calculate button. The calculator will show rate of return, capital gain, income yield, and total gain in the result box.
This calculator is especially useful when an investment earns both price appreciation and income. A stock may rise in price and also pay dividends. A bond may change in value and also pay coupon income. A rental investment may change in market value and also generate rent. In each of those cases, rate of return gives a fuller view than a price-only gain figure because it includes the income portion of performance.
When using the result, remember that this is a simple period return, not an annualized return. A 16% return earned in one year is not the same as a 16% return earned in five years. If you need a time-adjusted comparison across different holding periods, an annualized return tool is more suitable. Even so, rate of return remains one of the clearest and most practical measures of total investment performance over a chosen period. This calculator gives a fast way to separate capital gain, income yield, and total return for planning, review, and finance learning.