ROI Calculator
Measure the profitability of any investment. Enter the amount invested and the final value (plus the holding period, optionally) to get total ROI and annualized return.
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Save โถHow to use the ROI Calculator
- 1Enter amount invested in the form on the left.
- 2Fill in the remaining fields โ the result updates automatically as you type.
- 3Review the highlighted result and the supporting breakdown on the right.
- 4Use Copy, Share or Print to save or send your result.
ROI vs. annualized return
ROI = (Final value โ Cost) รท Cost ร 100. It tells you the total percentage gain but ignores time: a 50% ROI is spectacular over one year and mediocre over fifteen. Annualized return (CAGR) fixes this by expressing the growth as a constant yearly rate: CAGR = (Final/Initial)^(1/years) โ 1.
When comparing investments with different durations, always compare CAGR, not raw ROI. Include all costs โ fees, taxes, maintenance โ in the invested amount for an honest figure.
Frequently Asked Questions
โธWhat is a good ROI?
Context matters: long-run stock market CAGR is about 7โ10%; real estate and small businesses vary widely. Compare against alternatives of similar risk, not a universal number.
โธWhat is the difference between ROI and CAGR?
ROI is the total percentage return over the whole period. CAGR is the equivalent constant annual growth rate, which makes investments of different durations comparable.