ROI Calculator

Calculate return on investment as total ROI and annualized CAGR. Compare simple vs compound returns.
$
Input Method
$
years

Total ROI

50.00%

Annualized Return (CAGR)

8.45%

Dollar Gain

$5,000.00

ROI Breakdown

Initial Investment$10,000.00
Final Value$15,000.00
Dollar Gain/Loss$5,000.00
Total ROI50.00%
Annualized Return (CAGR)8.45%

Simple vs Compound Comparison

Simple Annual Return

10.00%

Compound Annual Return (CAGR)

8.45%

Use the ROI Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Calculate the return on your investments with this ROI Calculator, providing both the total ROI and the Annualized Compound Annual Growth Rate (CAGR). Understanding these metrics helps you assess investment performance and make informed decisions, especially when considering market trends towards 2026.

Total ROI is calculated as (Current Value - Initial Investment) / Initial Investment * 100%. Annualized CAGR uses the formula ((Current Value / Initial Investment)^(1 / Number of Years)) - 1. This calculator differentiates between simple returns (total ROI) and compound returns (CAGR), offering a comprehensive view.

A common mistake is confusing total ROI with annualized returns; total ROI doesn't account for the investment's duration. Another tip is to consider inflation when evaluating returns; a 5% nominal return might be a 2% real return if inflation is 3%.

Example: Stock Investment

  1. 1 Imagine you invested $10,000 in a tech stock on January 1, 2023. By January 1, 2026, the stock is worth $13,500.
  2. 2 Initial Investment: $10,000. Current Value: $13,500. Number of Years: 3.
  3. 3 Total ROI = ($13,500 - $10,000) / $10,000 * 100% = 35%. Annualized CAGR = (($13,500 / $10,000)^(1/3)) - 1 = 10.52%.
  4. 4 This means your investment grew by 35% over three years, which averages out to an annual compound growth rate of 10.52%. For context, the average S&P 500 return for 2023 was around 24%, and projections for 2024-2026 often hover around 7-10% annually, making your 10.52% CAGR a strong performance.

Source: SEC · Last updated: April 2026

Frequently Asked Questions

How do I calculate return on investment?
ROI = (Final Value - Initial Investment) / Initial Investment x 100. If you invested $10,000 and it is now worth $15,000, your ROI is 50%. For time-adjusted comparison, use annualized return (CAGR).
What is the difference between ROI and CAGR?
ROI is the total percentage return regardless of time. CAGR (Compound Annual Growth Rate) is the annualized return that smooths out volatility. A 100% ROI over 10 years equals about a 7.2% CAGR.
What is a good ROI?
A good ROI depends on the asset class. The S&P 500 averages about 10% annually before inflation. Real estate typically returns 8-12% including appreciation and rental income. Anything above the risk-free rate (Treasury yields) can be considered positive.

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