Total Market Returns Calculator

Calculator Inputs

Initial Investment

Extra Lump Sum

Annual Contribution

Contribution Growth %

Increase contributions annually to model rising savings.

Starting Index Level

Ending Index Level

Dividend Yield %

Dividend Growth %

Annual Fee %

Tax Drag %

Inflation %

Contribution Frequency

Contribution Timing

Dividend Handling

Start Date

End Date

Example Data Table

Use this sample scenario to test the calculator quickly.

Field	Example Value
Initial Investment	$10,000
Extra Lump Sum	$0
Annual Contribution	$6,000
Contribution Growth	2%
Starting Index Level	3,000
Ending Index Level	5,200
Dividend Yield	1.8%
Dividend Growth	3%
Annual Fee	0.05%
Tax Drag	0.15%
Inflation	3%
Contribution Frequency	Monthly
Contribution Timing	End of period
Dividend Handling	Reinvest dividends
Start Date	2018-01-01
End Date	2025-12-31

Formula Used

1. Price CAGR

Price CAGR = (Ending Index / Starting Index)^{1 / Years} − 1

2. Period Price Rate

Period Price Rate = (1 + Price CAGR)^{1 / Periods Per Year} − 1

3. Dividend Rate

Dividend Rate per period = Annual Dividend Yield / Periods Per Year

4. Portfolio Update

New Balance = Previous Balance × (1 + Price Rate) + Dividends − Fees − Taxes ± Contribution

5. Inflation Adjustment

Real Wealth = Nominal Wealth / (1 + Inflation Rate)^Years

6. Money-Weighted Return

XIRR solves the discount rate that makes all dated cash flows sum to zero.

This model estimates total market return using index growth, dividend yield, contribution timing, inflation, fee drag, and tax drag together.

How to Use This Calculator

Enter your starting investment and any extra lump sum.
Add your yearly contribution amount and expected annual contribution growth.
Type the starting and ending market index levels.
Set dividend yield, dividend growth, fees, tax drag, and inflation.
Choose how often contributions occur and whether they happen at period start or end.
Select whether dividends are reinvested or kept as cash.
Choose the start and end dates.
Press calculate to view summary metrics, yearly values, and the chart.
Use the CSV or PDF buttons to export the results.

FAQs

1. What does total market return include?

Total market return combines price change and dividends. This calculator also layers in contributions, inflation, fees, and tax drag for a more realistic investing view.

2. Why is price CAGR different from total return?

Price CAGR uses only the change between starting and ending index levels. Total return also reflects dividends, recurring contributions, and other portfolio assumptions.

3. What is money-weighted return?

Money-weighted return measures performance after considering when cash enters or leaves the portfolio. It is useful when contributions vary over time.

4. Why adjust for inflation?

Inflation-adjusted results show purchasing power, not just nominal dollars. This helps compare future wealth against today’s spending value.

5. What does tax drag mean here?

Tax drag estimates the yearly reduction caused by taxes on distributions or realized gains. It simplifies taxation into one annual percentage.

6. Should I reinvest dividends?

Reinvesting dividends usually increases long-term compounding. Turning reinvestment off helps model income-focused portfolios instead.

7. Can I use this for ETFs and index funds?

Yes. It works well for broad market ETFs, index funds, and benchmark-based planning when you know approximate index growth and dividend assumptions.

8. Are these results guaranteed?

No. Outputs are estimates based on your assumptions. Actual returns depend on market behavior, fees, taxes, timing, and real portfolio choices.