Investment ROI calculator: total + annualised return

Total return vs annualised return

Total return is the percentage gain over the entire holding period. Annualised return (CAGR, compound annual growth rate) is the equivalent yearly rate that would have produced the same total return. CAGR is the better number for comparing investments held for different lengths.

Example: KES 100,000 grows to KES 150,000 over 3 years. Total return is 50%, CAGR is roughly 14.5%. Compare that 14.5% to a money market fund at 12% to know which performed better per year.

Kenyan return benchmarks (2026)

Treasury bills (91-day): 12 to 16%
Treasury bonds (long): 13 to 18%
Money market funds: 9 to 15%
Top SACCOs (dividend yield): 8 to 14%
NSE 25 index (long-term historical): 10 to 12%
Nairobi residential rental yield (gross): 5 to 8%
Inflation: 5 to 7% (your real return is nominal minus inflation)

Frequently asked

Should I include dividends?

Yes. For NSE shares, the final value should reflect both share-price appreciation and dividends received (reinvested or otherwise). Otherwise you understate the actual return.

How do I account for capital gains tax?

Subtract estimated capital gains tax from the final value before entering it. Kenya CGT is 15% on property and unlisted shares. NSE-listed shares are exempt from CGT for most retail investors.

What is a "good" CAGR?

Higher than inflation (5 to 7%) and higher than risk-free Treasury bills (12 to 16% in 2026). Anything 15%+ over a long period is a strong real return for retail Kenyan investors.