Investment Return Calculator
Calculate ROI, CAGR and annualized return on your investments
Calculated in your browser – your inputs are not transmitted and are kept on this device only if you choose
Quick examples
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More detailsno costs · no distributions · taxes, 30% partial exemption · inflation 2%
Annualized return (CAGR)
per year
8.45%
8.45%€10,000 grew to €15,000 in 5 years – that is 8.45% per year (50% in total). After tax: 7.48% per year.
- Initial value
- €10,000.00
- Price gain/loss
- +€5,000.00
- Profit (net)
- +€5,000.00
- Capital gains tax + solidarity surcharge
- − €659.38
- Total return
- 50%
- Price return
- 50%
- Return after taxes
- 43.41%
- CAGR after taxes
- 7.48%
- Real final valueLoss of purchasing power: −9.4%
- €12,988.75
- Real return (total)
- 29.89%
- Real CAGR
- 5.37%
- Value multiple
- 1.50×
Comparison with interest rates and inflation
- Overnight deposits (bank average)as of Jul 2026
- 0.5% · +7.9 percentage points
- Fixed deposits up to 1 year (bank average)as of Jul 2026
- 2.22% · +6.2 percentage points
- German federal bonds, 10 yearsas of Aug 2026
- 3.37% · +5.1 percentage points
- Inflation (average of the last 5 years)as of Aug 2026
- 3.98% · +4.5 percentage points
Sources: Deutsche Bundesbank (bank interest rate statistics, yields on listed federal securities), Federal Statistical Office (consumer price index). We do not show stock indices because there is no official source for them; past returns say nothing about future ones.
What you can do
Thanks to the 30% partial exemption, you save on taxes.
How this was calculated
CAGR (Compound Annual Growth Rate) is the annual growth rate an investment would have needed to grow from an initial value to a final value, assuming profits are reinvested. It is the most important metric for comparing different investments over different time periods.
RZ-26 · headon.pro
Several deposits and withdrawals: money-weighted return
For savings plans, top-ups and withdrawals: enter every payment with its date and, at the end, today's value. The result is the annual rate your money actually earned (internal rate of return).
Example figures – replace them with your own.
- €
- €
- €
Your money earned 4.95% per year
Paid in €12,000.00, paid out including today's value €15,000.00, gain €3,000.00.
Method: the rate is chosen so that the present value of all payments is zero – the same equation as the effective annual rate under Section 16 PAngV (annex). Assumption: one year = 365 days. Before tax, without inflation.
Investment Return Calculator: Everything You Need to Know
Professionally calculate the performance of your investments
With our investment return calculator you can work out the actual performance of your investments. The calculator determines key metrics such as ROI, CAGR and total return, taking into account costs, taxes and inflation.
Return is the yield on a capital investment, expressed as a percentage of the capital invested. It shows how profitable an investment was or will be.
The most important return metrics
1. ROI (Return on Investment)
ROI measures the total return of an investment relative to the capital invested:
- Formula
- ROI = (profit / investment) x 100%
- Investment
- €10,000
- Sale value after 5 years
- €15,000
- Profit
- €5,000
- ROI
- 50%
2. CAGR (Compound Annual Growth Rate)
CAGR is the average annual growth rate. It is the most important metric for comparing investments with different holding periods:
- Formula
- CAGR = (final value / initial value)^(1/years) - 1
- Initial value
- €10,000
- Final value after 10 years
- €20,000
- Holding period
- 10 years
- CAGR
- 7.18% p.a.
Important: CAGR smooths out fluctuations and shows the constant annual growth rate that would be needed to get from the initial value to the final value.
3. Total return
Total return takes into account all earnings: price gains and distributions (dividends, interest):
- Formula
- Total return = (final value + distributions - initial value) / initial value x 100%
- Initial value
- €10,000
- Final value
- €15,000
- Distributions
- + €2,000
- Total return
- 70%
Return after taxes
Taking capital gains tax into account
Capital gains in Germany are taxed with the capital gains tax (Abgeltungssteuer):
- 26.375% total tax rate
- 25% capital gains tax + 5.5% solidarity surcharge on capital gains
- €1,000 tax-free allowance
- Tax-free per person (€2,000 for married couples). Anything above is taxed.
- 30% partial exemption
- For equity ETFs: effectively only about 18.5% tax due to partial exemption
- Church tax
- An additional 8-9% on the capital gains tax if you are a member of a church
Real vs. nominal return
Taking inflation into account
The nominal return shows the absolute profit. The real return takes into account the loss of purchasing power due to inflation:
- Formula
- Real return = (1 + nominal) / (1 + inflation) - 1
- Nominal return
- 7.00%
- Inflation rate
- 2.00%
- Real return
- ~4.90%
Warning: An investment with a 2% return at 3% inflation results in a real loss of purchasing power!
Comparison values with sources
Bank interest rates and inflation – official figures with date, no guarantee for the future
- Overnight deposits: 0.50% (July 2026)
- Average bank rate for new overnight deposits of private households (Deutsche Bundesbank)
- Fixed deposits up to 1 year: 2.22% (July 2026)
- Average bank rate, new business (Deutsche Bundesbank)
- Federal bonds, 10 years: 3.37% (Aug 2026)
- Yield on listed federal securities, 10 years residual maturity (Deutsche Bundesbank)
- Inflation
- The calculator compares with the average annual change in the consumer price index over the last 5 years (Federal Statistical Office).
- Stocks
- No average return stated: there is no official source for stock indices, and returns depend heavily on the chosen period.
The compound interest effect
The most important lever for long-term wealth building
Compound interest is the most important lever for long-term wealth building. The longer the investment period, the stronger the effect:
- Initial capital
- €10,000
- Final value
- €19,672
- Doubling time
- ~10 years
- Initial capital
- €10,000
- Final value
- €38,697
- Doubling time
- ~20 years
- Initial capital
- €10,000
- Final value
- €76,123
- Doubling time
- ~30 years
Rule of 72: Divide 72 by the return (in %) to get the approximate doubling time. At 7% return: 72/7 = 10 years.
Costs eat into your return
Every percentage point of costs reduces your effective return
- 1Order feesWhen buying and selling (0-1% per trade). Adds up with frequent trading.
- 2Ongoing costs (TER)For funds and ETFs (0.1-2% p.a.). Actively managed funds are more expensive than passive ETFs.
- 3SpreadsThe difference between the buy and sell price. Especially relevant for exotic assets.
- 4Custody account feesAt some banks (€0-50 p.a.). Many online brokers offer free custody accounts.
Example: With a 7% gross return and 1.5% costs, only 5.5% net remains. Over 30 years, that makes a difference of over €26,000 on a €10,000 initial investment!
Note
These calculations are for illustrative purposes only and do not replace professional financial advice. Past returns are no guarantee of future earnings. There is always a risk of loss when investing.
Frequently asked questions
Everything you need to know about the investment return calculator
What is a good return?
It depends on the risk you want to take. At the very least, the return should exceed inflation, otherwise your money loses purchasing power. The calculator compares your return with bank interest rates and inflation – each with an official source and date.
Why is CAGR better than the average return?
CAGR accounts for the compound interest effect. The simple average return often significantly overstates performance.
How do I compare different investments?
Use CAGR! It makes investments with different holding periods and amounts comparable.
Should I reinvest distributions?
For maximum compound interest effect: yes! Reinvested dividends can make up 30-50% of total return over the long term.