FTB-C000102 / Formula component

Total Return

Total return measures price change together with eligible distributions over a declared holding period.

Also known asinvestment total return

Foundation Formula defined 11 linked topicsPublished

Definitions

In plain terms

If a share rises by 5% and also pays a dividend worth 2% of the starting price, the simplified total return is about 7%.

Technical

A single-period total return combines comparable ending value and declared cash or security distributions relative to starting value, with explicit reinvestment, tax, FX, and timing rules.

Scope

Gross, net, security-level, portfolio, and index total-return conventions can differ.

Formula

R_total = (P1 - P0 + D) / P0
LaTeX: R_{total}=(P_1-P_0+D)/P_0
SymbolMeaningUnit
P0starting comparable pricecurrency
P1ending comparable pricecurrency
Deligible distributions during the periodcurrency

Output unit: decimal return

Examples

  • A governed calculation records total return with its exact basis, effective time, source, and units.

Common misconceptions

  • Total Return does not have one universal treatment without the applicable methodology, event terms, and data context.

Concept relationships

Related

Contrasts with

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D02-F01-A03 Primary
  • D02-F02-A01 Important
  • D02-F02-A02 Important
  • D02-F02-A03 Important
  • D02-F02-A04 Important
  • D02-F02-A05 Important
  • D02-F03-A04 Important
  • D02-F03-A05 Important
  • D03-F04-A02 Primary
  • D03-F04-A03 Primary
  • D07-F03-A08 Important

Evidence and governance

  1. S&P Dow Jones Indices Index Mathematics Methodology S&P Dow Jones Indices · first party methodology

    Supports: preferred label, short definition, technical definition, formula

    Limits: Authoritative for the provider's indices; conventions are not universal defaults for every index or security-level return series.

  2. Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract

    Supports: variant distinction

    Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.

Reviewed by
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.