Plain-language meaning
Total return is broader than price return because it includes income received from the investment. For funds and stocks, it is often the better measure when comparing historical performance.
Example
If an investment rises from 100 to 108 and pays 2 in dividends, total return is 10%, before taxes and fees.
Limitations
Total return can be shown before or after fees, taxes, currency effects and reinvestment assumptions. Always check whether dividends are reinvested and whether the return is nominal or inflation-adjusted.
How this term affects your result
Total return affects the result through the units, time period, rate, threshold or method used by the related calculator. Read it together with the page's formula and assumptions before comparing results across tools or sources.
What to check
- Use the same unit system, currency and time period as the related calculator.
- For regulated, health, tax, finance, safety or live-data topics, check the primary source named on the related page.
- If the term is used as a threshold, rate or category boundary, confirm the exact definition before relying on the estimate.
References
- SEC: Mutual Funds and ETFs - A Guide for Investors - Discusses total return reporting and investment-company context.
FAQ
Is Total return defined the same way everywhere?
Not always. Some terms are mathematical and stable, while others vary by country, institution, industry, product or data source.
Why link glossary terms to calculators?
Calculator users often need the term at the moment they interpret a result. Linking the definition to the calculator reduces ambiguity.