Finance · Return on investment

ROI calculator

Work out your net profit, return on investment (ROI), and annualized return (CAGR) from an initial and final value.

Investment details

Net profit
—
Final value minus initial investment
Total ROI—
Annualized ROI (CAGR)—

Rough sheet

step-by-step
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ROI vs. annualized return

Return on investment (ROI) is simply (final value − initial value) ÷ initial value, expressed as a percentage — it tells you your total gain or loss but says nothing about how long it took. Annualized return (CAGR) solves for the constant yearly growth rate that would turn your initial value into your final value over the number of years you held it, which is why a 50% ROI over 10 years annualizes to a much lower number than the same 50% ROI over 2 years.

Frequently asked questions

ROI is your total percentage gain over the entire holding period. Annualized ROI (CAGR) spreads that gain evenly across each year, making it easier to compare investments held for different lengths of time.

No — this calculator compares a single initial investment to a single final value. For an investment with regular ongoing contributions, the Compound Interest Calculator is a better fit.

It depends heavily on the asset class, risk level, and time period involved. Comparing the annualized ROI against a relevant benchmark (like a broad market index) over the same period usually gives more useful context than the total ROI figure alone.