Enter the closing value, opening value, and earnings from an investment into the calculator to determine the total return.
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Total Return Formula
The following formula is used to calculate a total return.
TR = (CV - OV) + E
- Where TR is the total return ($)
- CV is the closing value ($)
- OV is the opening value ($)
- E is the earnings from the investment ($)
To calculate the total return subtract the opening value from the closing value, then add the earnings from the investment.
Total Return Definition
A total return is defined as the absolute value generated from an investment over time.
Total Return Example
How to calculate total return?
- First, determine the closing value.
Measure the final value.
- Next, determine the opening value.
Measure the initial value.
- Next, determine the earnings from an investment.
Calculate the earnings from the investment.
- Finally, calculate the total return.
Calculate the total return using the equation above.
FAQ
A total return is a term typically used in finance to describe the true or absolute total amount of value generated from an investment over time. If you look at the formula you can see that it includes the change in the value of the investment itself, such as a stock price, as well as the earnings generated from the investment, such as dividends.
