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Finance & Investment · Returns

Currency-adjusted Return Calculator

Investing in US stocks or any foreign market? Your return in rupees (or your home currency) is the asset's return combined with the change in the exchange rate. Enter yearly rates or your actual buy and sell prices and exchange rates to see the home-currency return and how much came from the currency.

Your inputs

Quick start — try a typical case

₹ 10 lakh

% a year
% a year

Positive if the foreign currency gains against yours (e.g. the rupee weakens against the dollar).

years

Your result Live

Return in Your Currency (per year)

13.30%

10.00% from the asset + 3.00% from the currency, compounded together

Total Return in Your Currency
248.58%
Value Now
₹34,85,773 (invested ₹10,00,000)
Gain from the Asset Itself
₹15,93,742
Gain from the Currency Move
₹8,92,031
Asset Return in Its Own Currency
10.00% a year · 159.37% total
Exchange-rate Change
3.00% a year · 34.39% total
  • Invested · 29%₹10,00,000
  • From the asset · 46%₹15,93,742
  • From the currency · 26%₹8,92,031

Currency gains count as part of your capital gain: in India, gains on foreign shares are computed in rupees using the exchange rates on the buy and sell dates.

A hedged fund removes most of the currency effect (and its cost is roughly the interest-rate gap between the two currencies).

An estimate from the assumptions you entered, not a guaranteed outcome.

How this is calculated

(1 + R_home) = (1 + R_asset) × (1 + R_fx) → R_home = R_asset + R_fx + R_asset × R_fx

R_asset
Return of the investment in its own currency
R_fx
Change in the price of the foreign currency in your currency

When you invest abroad you hold two things: the asset and the foreign currency it's priced in. If the rupee weakens 3 % a year against the dollar, a US fund earning 10 % in dollars earns about 13.3 % in rupees. If the rupee strengthens, the currency eats into your return.

Assumptions & sources

  • Rates mode: constant yearly asset return and exchange-rate change.
  • Prices mode: no dividends, fees or taxes; exchange rates are what you actually paid and received.
  1. 1CFA Program Curriculum — Quantitative Methods: The Time Value of Money — CFA Institute
  2. 2Investments (Bodie, Kane & Marcus), chapters on returns, compounding and the time value of money — McGraw-Hill
  3. 3Reference rates for foreign currencies — Reserve Bank of India / FBIL

Calculator ID FIN-RET-FX-001 · version 1.0.0

Common questions

Why do US stocks give higher returns in rupees?

The rupee has historically weakened against the dollar (roughly 3–4 % a year over long periods), which adds to the dollar return when converted back.

Isn't it just asset return + currency change?

Almost — there's also a cross term (asset × currency). For 10 % and 3 %, that's 0.3 % a year, which compounds over time.