ROI Calculator
Calculate return on investment (ROI) and annualized growth rate (CAGR) of any investment.
Result
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What is this?
The ROI Calculator measures how well an investment performed, returning both the total ROI and the annualised growth rate (CAGR). Enter what you invested, what it is worth now, and how many years it was held.
The two numbers answer different questions. Total ROI is the overall percentage gain or loss - buy at 10,000, sell at 14,000 and the ROI is 40 percent regardless of time. CAGR restates that as a steady yearly rate: the same 40 percent over 4 years is about 8.8 percent per year. CAGR is what lets you compare a 3-year property flip against a 7-year fund holding on equal footing, because it smooths the path into a single annual pace.
Worked example: an initial 25,000 that grew to 40,000 over 6 years shows a 60 percent ROI and a CAGR of about 8.1 percent. If the final value is below the initial, both figures go negative and represent the yearly pace of loss.
Keep two caveats in mind: CAGR ignores cash flows in between (top-ups or withdrawals), so it suits single-in, single-out positions; and past annualised return does not guarantee future results. For deposit-style growth with regular contributions, use the Interest Calculator. Everything runs locally in your browser.
The two numbers answer different questions. Total ROI is the overall percentage gain or loss - buy at 10,000, sell at 14,000 and the ROI is 40 percent regardless of time. CAGR restates that as a steady yearly rate: the same 40 percent over 4 years is about 8.8 percent per year. CAGR is what lets you compare a 3-year property flip against a 7-year fund holding on equal footing, because it smooths the path into a single annual pace.
Worked example: an initial 25,000 that grew to 40,000 over 6 years shows a 60 percent ROI and a CAGR of about 8.1 percent. If the final value is below the initial, both figures go negative and represent the yearly pace of loss.
Keep two caveats in mind: CAGR ignores cash flows in between (top-ups or withdrawals), so it suits single-in, single-out positions; and past annualised return does not guarantee future results. For deposit-style growth with regular contributions, use the Interest Calculator. Everything runs locally in your browser.
Formula
ROI = (Final - Initial) / Initial x 100
CAGR = ((Final / Initial)^(1/years) - 1) x 100
CAGR = ((Final / Initial)^(1/years) - 1) x 100
Frequently Asked Questions
What is CAGR?
Compound Annual Growth Rate represents the rate of return needed for an investment to grow from beginning to end value.