Rate of Return Calculator

Calculate the annualized rate of return on your investment based on purchase price, current value, and holding period.

Tip: Annualized Rate of Return shows the compound annual growth rate of your investment over the holding period.

Inputs

One Thousand Rupees

Ten Lakh Rupees

years

Time period you held the investment.

Results
Purchase Price
₹1,000.00
Gain
₹9,99,000.00

Investment growth over 20 years

Annualized Rate of Return41.25%
Purchase Price₹1,000.00
Current Value₹10,00,000.00
Gains or Losses₹9,99,000.00 (Gain)
Holding Period20 years
Absolute Return99900.00%
Understanding the Formula
Annualized Rate of Return: The compound rate at which your investment grows annually to reach the current value from the purchase price.
Formula:
[((Purchase Price + Gains or Losses) / Purchase Price)^(1/Holding Period) - 1] × 100
Purchase Price: The initial amount you paid to buy the investment.
Current Value: The present market value of your investment.
Gains or Losses: The difference between Current Value and Purchase Price (Current Value - Purchase Price).
Holding Period: The number of years you have held the investment.
Absolute Return: Total percentage gain or loss without considering the time factor. Formula: ((Gains or Losses) / Purchase Price) × 100
Example: Purchase Price of ₹1,000 growing to Current Value of ₹1,000,000 (Gains: ₹999,000) over 20 years yields an Annualized Rate of Return of 41.25% per annum.
⚠️ Important Disclaimer

Please note: This calculator is provided for illustrative and educational purposes only. The results do not represent actual or guaranteed investment returns.

Stock markets and investments are subject to market risks and do not offer fixed rates of return. Past performance is not indicative of future results, and it is impossible to accurately predict future rates of return.

Always consult with a qualified financial advisor before making investment decisions.