Return on Investment
Also known as: ROI, yield, Rendite, return
Return is the profit you make from an investment — expressed as a percentage per year. It tells you how much your invested money is working for you.
What's realistic?
Savings account: 0–3% (below inflation). Bonds: 2–5%. Broadly diversified stock ETFs: 7–8% long-term (before inflation). Individual stocks: unpredictable. Crypto: highly speculative. Rule of thumb: the higher the promised return, the higher the risk.
How do you calculate return?
Simple return = (profit ÷ invested capital) × 100. If you invest €10,000 and have €10,700 after one year, your return is 7%. Important: over multiple years, the annualized average return matters, not the total return.
BudgetHeld says
In the BudgetHeld compound interest calculator, you enter an expected return and see how your savings plan develops over the years. For long-term planning, 6–7% is a realistic value for broadly diversified ETFs.
Related tools
Compound Interest Calculator →Written by David El Dib — Financial expert & founder of MoneyTalk