Use annual return to compare investments over different time frames. Calculate annual return: Adjust purchase price for splits, then annualize simple return. Dividends can be included by using ...
The return of an investment is the amount by which it has changed in value over a particular period of time, expressed as either a dollar amount or a percentage of the initial investment.
For example, suppose you invested $5,000 annually in your 401(k) and earned 7% average annual returns. Paying a 0.5% fee vs. a 0.25% fee would reduce your returns by nearly $20,000 after 30 years.