Total Return

Total return is the simplest performance metric: “If I bought at the start and sold at the end, what percent did I make (or lose)?”

It’s also the number people anchor on the most — which is fair — but it can hide how you got there. Two assets can have the same total return and wildly different paths (and very different stomach‑test requirements). That’s why we always pair it with risk metrics like volatility and max drawdown.

The formula

For a price series $P_t$ over a period:

$$\text{Total Return} = \frac{P_{end}}{P_{start}} - 1$$

We show it as a percent.

How we calculate total return at Gale Finance

1. Use the first and last available close in the window. We don’t invent prices for missing days.

2. No forward-filling. We use observed closes across the site. This doesn’t change the start/end total return, but it avoids artificial zero‑return days in volatility and tail metrics.

3. Adjusted close when available. For equities/ETFs we use adjusted close where the source provides it, so splits and cash dividends are handled in the standard way (otherwise “total return” would be distorted around split dates and would ignore dividends).

4. Same window for both assets on compare pages. When we compare two assets, the return window is the overlapping period where both have data, so the comparison is apples-to-apples. If one market is closed, we wait for the next shared close rather than pretending we know the other asset’s “return” for a day it didn’t trade.

What total return misses

• Path risk: Total return doesn’t tell you whether you had a 60% drawdown along the way.
• Volatility & tails: A smooth +20% year and a “down 40%, up 100%” year can both land at +20%.
• Costs: We don’t model fees, spreads, taxes, or slippage, which can matter a lot for short-term strategies.

If you’re reading total return as a decision input (not just trivia), also look at volatility and max drawdown.