Investment Return Calculator
Project the future value of an investment with annual contributions. Optionally enter an inflation rate to see the real (purchasing-power-adjusted) value alongside the nominal figure.
Your investment details
Added at the start of each year after year 1.
Related: ROI Calculator · Annualised Return · Compound Growth
How the investment return calculator works
This calculator projects the future value of an investment using compound growth. It applies your expected annual return rate to the balance at the start of each year, and adds any annual contribution at the beginning of each year after the first. The result is a nominal (before-inflation) figure showing how your portfolio could grow under a consistent rate of return. If you enter an inflation rate, it also shows the real value — adjusted for the eroding effect of inflation on purchasing power.
Choosing a realistic annual return assumption is important. Broadly diversified global equity index funds have historically returned around 7–10% per year in nominal terms over the long run, but returns vary significantly by period and asset class. A commonly used planning figure for a balanced portfolio is 5–7% before inflation. Investment charges, taxes (such as capital gains tax or income tax on dividends outside an ISA or SIPP), and the timing of contributions can all affect your actual outcome.
This calculator is for illustrative purposes and does not constitute financial advice. Past performance of any asset class is not a reliable guide to future results. For personalised investment planning, consider speaking to a regulated financial adviser authorised by the Financial Conduct Authority (FCA).
Frequently asked questions
What is a good annual investment return?
Historically, a diversified global equity portfolio has delivered average annual nominal returns of around 7–10% over the long term, though returns vary significantly by year and asset class. UK investors should also factor in charges: a 1% annual fund fee can meaningfully erode returns over decades. A commonly used planning assumption for a balanced portfolio is 5–7% per year before inflation. Past performance is not a reliable guide to future results.
How does inflation affect investment returns?
Inflation erodes the purchasing power of your investment returns. If your portfolio grows by 7% in a year but inflation is 3%, your real return is approximately 4%. Over long periods, this difference compounds significantly. This is why financial planners distinguish between nominal returns (the headline figure) and real returns (inflation-adjusted). In the UK, the Consumer Prices Index (CPI) is the standard measure of inflation.
What is the difference between nominal and real returns?
A nominal return is the percentage gain on an investment before adjusting for inflation — it is the figure you see on your investment platform. A real return adjusts for inflation to show the increase in actual purchasing power. For example, if you earn a nominal return of 6% and inflation is 2.5%, your real return is approximately 3.4%. Real returns are more meaningful for assessing whether your wealth is genuinely growing in terms of what you can buy.
How do I calculate my investment return?
For a simple return without contributions, divide the gain by the initial investment: (Final Value − Initial Investment) / Initial Investment × 100. For an annualised return (CAGR), use: (Final Value / Initial Investment)^(1/years) − 1. If you have made regular contributions, the internal rate of return (IRR) or money-weighted return (MWR) gives a more accurate picture, but these require more complex calculations. This calculator uses compound growth with annual contributions to project future value.