Understanding Investment Returns

Ask five investors what their portfolio's "return" is, and you'll likely get five different numbers — because most people are unknowingly using different, sometimes misleading, ways to measure it. This guide breaks down every major return metric (CAGR, XIRR, ROI, dividend yield), when each one actually applies, and how to calculate your own using Finzony's calculators along the way.

3 Modules

9 Lessons

Free forever

Reviewed by Finzony Finance Team

Start From Beginning

Basics of Return Measurement

Real-World Return Metrics

Practical Application

Start First Lesson

Course Modules

Complete each module in order for the best learning experience.

Module 13 lessons

Basics of Return Measurement

The foundational math every return metric builds on — simple vs compound growth, future value, and your first real return metric: CAGR.

Start Module

1

Simple Interest vs Compound Interest: What's the Real Difference?

2

Future Value Explained: How Money Grows Over Time

3

What Is CAGR and Why It's the Number You Should Trust Most

Module 23 lessons

Real-World Return Metrics

The metrics that handle what CAGR can't — irregular investments, individual stock performance, and income-based returns.

Start Module

1

XIRR vs CAGR: When to Use Which

2

How to Calculate Your True Stock Market Return (ROI)

3

Dividend Yield Explained: What It Tells You (and What It Doesn't)

Module 33 lessons

Practical Application

Putting CAGR, XIRR, and ROI to work — comparing investments fairly, spotting a misleading statement, and avoiding the mistakes that quietly distort your return numbers.

Start Module

1

Comparing Returns Across Different Investments Fairly

2

Why Your Bank/App Statement Return Isn't Your Real Return

3

Common Return Calculation Mistakes Investors Make