ROI Calculator
Calculate the total return on your PSX stock investment including price appreciation and dividends. CAGR included.
Investment Details
Formula
Worked Example
Hypothetical example: bought 500 shares at Rs. 180 (total Rs. 90,000). Current price Rs. 220, with Rs. 8,000 of dividends received over 3 years. Total value = 500 × 220 + 8,000 = Rs. 118,000. ROI = 31.1%. CAGR = (118,000 ÷ 90,000)^(1/3) − 1 = 9.5%.
How to Interpret the Result
A positive ROI means your investment has grown. CAGR is the more useful metric as it annualizes the return. Compare your CAGR with what you could have earned elsewhere over the same period, such as T-bills, savings certificates or fixed deposits, using the rates that applied at the time, and with inflation.
Common Mistakes
1) Not including dividends in the total return calculation. 2) Forgetting to annualize returns — a 50% return over 5 years is only ~8.4% CAGR. 3) Ignoring transaction costs and taxes. 4) Using short-term performance (6 months) to judge an investment.
Learn the Method
Free lessons that explain the ideas behind this calculator: