Calculation playbook

Investment Returns Playbook

Investment calculators are useful when they make the assumptions visible. Return, annualized growth and income yield answer related but different questions.

ROI answers: what did I gain?

ROI compares net gain with initial investment. Use the Investment ROI Calculator when you know the starting amount, ending value, income and fees.

CAGR answers: what annual rate would smooth this path?

CAGR uses beginning value, ending value and years. It is useful for comparing periods of different lengths, but it hides volatility. Use the CAGR Calculator with care and always check the period length.

Rule of 72 is a shortcut

The Rule of 72 Calculator estimates years to double by dividing 72 by the annual return rate. It is a mental shortcut, not an exact projection.

Income yield is not total return

The Dividend Yield Calculator divides annual dividend by share price. It does not include price changes and dividends can change.

Play it: one investment, three views

Start with 10,000 and ending value 16,000. First use ROI. Then use CAGR over 5 years. Finally use Rule of 72 with the CAGR result to estimate doubling time.