Investment Comparison
Compare two investments side by side on a like-for-like annualised basis.
Introduction
Who this is for: Investors choosing between two opportunities with different profiles.
Why it matters: Investments with different holding periods, income profiles and leverage cannot be compared on headline numbers. Annualising and separating income return from capital return makes them genuinely comparable.
Typical scenario: Choosing between a high-yielding commercial unit and a lower-yielding residential asset with better growth prospects.
- Comparing total returns over different holding periods.
- Ignoring that a geared investment carries different risk to an ungeared one at the same return.
- Forgetting transaction costs, which hit shorter holds hardest.
Inputs
Investment A
years
Investment B
years
Exit
Analysis
Investment A returns 12.49% annualised (£112,117 total profit); Investment B returns 11.90% (£120,700). Investment A is ahead by 0.59 percentage points a year.
This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.
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Sensitivity
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Live Results
A: Annualised Return
12.49%
B: Annualised Return
11.90%
Better Return
Investment A
Difference
0.59%