Investment Return Comparison Calculator
Compare two investments' final values.
Compare two investments' final values after matched time horizons at different expected returns. Enter principal and option a return for an instant result.
What this tool does
Enter principal, horizon, and expected returns for two investments. The tool shows final value of each and the gap.
Enter Values
Formula Used
Spotted something off?
Calculations, display, or translation — let us know.
Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
50,000 over 15 years at 6% vs 9%: final values 119,828 vs 182,124 — 62,296 gap. Even a 3% return gap compounds dramatically. When choosing between investment options, the gap is the clearest case for research before committing.
Quick example
With principal of 50,000 and horizon of 15 (plus option a return of 6% and option b return of 9%), the result is 62,296.21. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.
Which inputs matter most
You enter Principal, Horizon, Option A Return, and Option B Return. The rate and the time horizon usually dominate — compounding means a small change in either reshapes the final figure more than a similar shift in contribution size. Test this by doubling one input at a time.
What's happening under the hood
Compound growth for each return rate. Gap is absolute difference. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.
Why investors run this
Most people's intuition for compounding is wrong — not because the math is hard, but because linear thinking doesn't account for curves. Running numbers through a calculator like this one is the cheapest way to recalibrate that intuition before making an irreversible decision about contribution rate, asset mix, or retirement age.
What this doesn't capture
Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. Treat the number as one scenario, not a forecast.
Return comparison produces two final values based on the inputs provided.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Compound growth for each return rate. Gap is absolute difference.
References
Frequently Asked Questions
Should I always pick higher return?
What affects realised return?
Passive vs active implications?
How accurate are long-term projections?
Related Calculators
Compound Interest Calculator
Calculate compound interest growth on savings and investments with adjustable rates, time periods, and compounding frequency for accurate projections.
Passive vs Active Fund Calculator
Compare long-term returns of passive index funds vs active managed funds at typical fee levels. Enter investment and gross return to see fee-drag gap.
Annual Investment Return Calculator
Calculate annualised rate of return from start value, end value, and years held. Shows annualised return from the values you enter.
More Investing Calculators
Investing
100 Minus Age Asset Allocation Calculator
Calculate stock vs bond allocation using 100-minus-age rule. Shows stock and bond allocation percentages from the values you enter.
Investing
409A Valuation Impact Calculator
Calculate 409A valuation impact on stock option exercise and exit profits. Enter strike price and 409a fmv for an instant result.
Investing
Active vs Passive Investing Calculator
Compare active and passive investment strategies accounting for fees over long horizons. Enter initial investment to see difference and passive.
Investing
Hotel ADR Calculator
Calculate hotel ADR, RevPAR, and occupancy from revenue and rooms data. Enter room revenue and rooms sold total for an instant result.
Investing
After Repair Value (ARV) Calculator
Calculate real estate flip profit with ARV, repair costs, and the 70% rule check. Enter purchase price and after repair value arv for an instant result.
Investing
Agricultural Land Calculator
Calculate agricultural land investment IRR including lease income and appreciation. Enter land purchase price and lease rate for an instant result.
Explore Other Financial Tools
Financial Health
MOQ Calculator
Calculate minimum order quantity needed to hit margin target including tooling amortization. Enter target margin and per-unit mfg cost for an instant result.
Lifestyle
IVF Success Rate vs Cost Calculator
Estimate IVF total cost given success rate and cycles. See cumulative probability and expected cost. Enter cost per cycle and see the result instantly.
Utilities
Electricity Bill Estimator
Estimate monthly electricity bill from kWh usage and rate. See annual projection and daily average. Enter rate per kwh and see the result instantly.