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Currency-Adjusted Investment Return Calculator

Combine a foreign asset return with the currency move in your home currency.
Home-currency return
5.90%
Ending home-currency value
$10,590
Currency contribution
-5.60%

Asset and currency returns compound; they should not be added mechanically. Define the currency move from the investor’s home-currency perspective.

An overseas investment’s home-currency return depends on both the asset and exchange rate. This calculator compounds the local-market return with the currency’s change against the investor’s home currency, subtracts fees, and estimates the ending home-currency value.

Formula reviewed 2026-08-021 primary sourceMethodology and disclosures →

How this currency-adjusted investment return calculator works

The calculator multiplies the asset growth factor by the foreign-currency growth factor, subtracts entered costs, and applies the combined return to the starting home-currency value.

Formula

Home-currency return = (1 + local asset return) × (1 + currency move) − 1 − costs

Depositary receipts, fund hedges, multiple revenue currencies, taxes, and conversion spreads can make realized returns differ from this simple model.

Primary specifications

Before you use the result

Assumptions

  • • Currency move is measured as foreign-currency appreciation against the home currency.
  • • Asset and FX periods are identical.
  • • Taxes, hedges, distributions, and interim cash flows are excluded.

Quick start

  1. 1. Measure the asset return in its listing currency.
  2. 2. Enter the currency move using the stated direction convention.
  3. 3. Compare unhedged and hedged scenarios including actual hedging costs.

Frequently asked questions

Why multiply asset and currency returns?

The exchange-rate change applies to the asset’s ending local-currency value, so the two growth factors compound.

What sign should I use for the currency move?

Use a positive number when the foreign currency strengthens against your home currency and a negative number when it weakens.

Does this model currency hedging?

Not directly. A hedged scenario can set currency movement near zero and include expected hedge costs in fees.

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The FX translation is measurable. The exposure is company-specific.

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