PRACTICAL GUIDE · UTILIA WORK
How to calculate investment returns
Returns relate gains or losses to the money invested and help compare results.
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The calculation
Total return (%) = (final value − initial investment) ÷ initial investment × 100. Include dividends or other income in the value received.
Worked example
Investing €2,000 and receiving €2,300 gives a €300 gain and a total return of 15%.
Things to consider
For investments with different durations, consider annualised returns. Deduct costs, taxes and inflation where appropriate.
General educational information. Examples are illustrative; check the conditions and rules applicable to your situation before making important decisions.
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