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Litecoin Return Calculator with Inflation Adjustment

Written by:
PK

On this page we present a Litecoin return calculator.  Enter any two dates between October 24, 2013 and a final date and we'll estimate the total return on any money invested in Litecoin as well as an annualized return. Enter a theoretical starting investment value and the Litecoin calculator will estimate the investment value on the closing date.

Additionally, you can choose to adjust returns for inflation using the CPI-U index. We interpolate or extrapolate to estimate the CPI index on a given date, allowing inflation adjustments on any day in a month.

Litecoin Price Return Calculator with Inflation Adjustment

The Litecoin return calculator uses historical litecoin data from CryptoCompare merged to data from BitFinex via Quandl.

Using the Litecoin Price Return Calculator

Litecoin is a popular cryptocurrency which is very similar to Bitcoin.
Litecoin is a popular cryptocurrency and very similar to Bitcoin.

Due to the extreme volatility of an investment in Litecoin, minor changes in input to the tool can cause vast swings in ending price value. All values internal to the tool are closing prices determined by the data providers.

Investing Options

  • Starting Investment ($): A dollar amount invested in Litecoin on a theoretical 'Starting Date'.
  • Starting Date: The date to start the Litecoin investment.
  • Ending Date: The date to sell a theoretical Litecoin investment.
  • Adjust for Inflation (CPI): Check the box and the tool with quote return percentages and terminal value of the investment using a CPI-U adjustment. For dates later than the last inflation reading, linear extrapolation is used to estimate the inflation index. For earlier dates we use interpolation.

Litecoin Return Output Results

  • Total Return (%): Litecoin investment total return between the Starting and Ending date. (Possibly adjusted for CPI.)
  • Annualized Return (%): The return between starting and ending date scaled or normalized to an annual return.
  • Ending Value ($): The value of the Litecoin investment on the 'Ending Date'. (Possibly adjusted for CPI.)
  • CPI Adjusted? Informational box used to note whether CPI adjustment is accounted for in the current calculation.

Sources and Methodology for the Litecoin Price Return Calculator

The Litecoin return calculator uses data from BitFinex and CryptoCompare. Although Litecoin was 'released' in October 2011, the first dollar denominated trades on exchanges trickled in 2 years later in October 2013. We pick up the thread on October 24, 2013 when Litecoin was trading at $3 a coin.

If there is both CryptoCompare data and BitFinex data, BitFinex takes precedence.

Just like with our bitcoin return calculator (or with cryptocurrency in general), 'close' doesn't mean much in the litecoin market. We are using the closing price reported by CryptoCompare and BitFinex. A trader making trades on the dates input to the tool may have seen vastly different fills than the prices we're quoting. Litecoin has experienced extreme intraday volatility, so this might be on the order of double digit percentage differences.

As in the bitcoin tool, the trends should be correct in our data - we're directionally correct, if you will. Still, the caveat remains: this data is an estimation and is for research or informational purposes only. Do your own due diligence.

Litecoin as a Speculation

We've said it before and we'll say it again: past performance is no guarantee of future results. For all the hand-wringing we did above about Litecoin's intraday volatility, there's no guarantee Litecoin will continue in the same way.

The same advice applies to returns: there are extreme gains and losses in the historical record. That doesn't necessarily mean future returns will be similar. Just remember: the past may not repeat itself, but it does often rhyme. Be careful if you do choose to add Litecoin or any other cryptocurrency to your portfolio.

For most investors, we recommend passively managed index funds. If you understand the risks, have done the research, and find Litecoin (or any other cryptocurrency such as Bitcoin) worth the speculation, hopefully this Litecoin calculator helps you on your journey. Good luck.

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