Total return: drag the finish
Drag the bar to set the ending value. The start and the income stay put, so total return moves only because the price path does. Raise the finish and the total rises. A finish equal to the start leaves only the income yield.
Total return
8.0%
Ending value
$105.00
The start stays $100.00 and income stays $3.00. Price change on this drag is 5.0 percent. Illustrative arithmetic, not a forecast or advice.
Income received
$3.00, held still so only the ending price moves the total.
In short
- Drag the bar up for a higher ending value and a higher total return.
- Read the rate as percentage points: 8, not 0.08.
- Watch income stay put. Only the ending value is moving.
- Focus the handle and use the arrow keys to step the finish.
Income plus the price path
Total return adds income to the price change. How total return works is that identity, with the total return calculator under the answer.
CAGR is a multi-year annualised rate. Total return against CAGR is the pair.
A finish below the start is still a total
Income can make a price loss smaller. It does not flip the sign unless the income is larger than the price drop. This picture will show that.
What the drag will not do
It will not reinvest the income inside the period, and it will not strip inflation. It is educational material, not financial advice.
Common questions
Is 8 percent a yield?
The income piece is a yield. The 8 percent is the whole holding-period return.
Why not drag income?
Because this picture is the price path. Income is held still so you can see what the finish does to the total.
Is this CAGR?
No. CAGR needs years. This is one period.
Keep reading
This page is educational material, not financial advice. The figures come from the formula shown and assume the inputs you enter hold for the whole term. Your own rate, fees, taxes and timing will differ, so treat the output as arithmetic to check a decision against, not as a recommendation.