ROI Calculator

Work out your return on investment — the total percentage gain or loss, the dollar amount you made, and the annualized return (CAGR) once you factor in how long you held it. Enter what you put in, what it's worth now, and the holding period. Updates as you type.

ROI vs annualized return

ROI tells you the total percentage you gained or lost over the whole period:

ROI = (final − initial) ÷ initial × 100

But ROI ignores time. A 50% return is excellent in one year and mediocre over ten. The annualized return, or compound annual growth rate (CAGR), fixes that by expressing the growth as a steady yearly rate:

CAGR = (final ÷ initial)^{(1 ÷ years)} − 1

• Use ROI to see the headline gain on a single deal or project.
• Use annualized return to compare investments held for different lengths of time — it's the fair, apples-to-apples number.
• Watch fees and taxes — they eat into real returns and aren't included here.

This is an educational estimate. It doesn't include fees, taxes, dividends or additional contributions. Not financial advice.

FAQ

How is ROI calculated?

ROI = (final value − initial investment) ÷ initial investment × 100. For example, turning $1,000 into $1,500 is a gain of $500 on $1,000, which is a 50% ROI. It measures the total percentage return over the whole period, regardless of how long that took.

What is annualized return (CAGR) and why does it matter?

The compound annual growth rate (CAGR) is the steady yearly rate that would grow your initial amount to the final amount over the holding period: CAGR = (final ÷ initial)^(1 ÷ years) − 1. It matters because a 50% total return over 1 year is far better than 50% over 10 years — CAGR lets you compare investments held for different lengths of time on equal footing.

Does ROI account for the time the money was invested?

Plain ROI does not — it is just the total percentage gain. That is why this calculator also shows the annualized return (CAGR), which divides the growth across the years you held it. Always compare investments by annualized return, not raw ROI, when the holding periods differ.

Can this show a loss?

Yes. If the final value is less than what you invested, the ROI and annualized return are negative — the calculator shows the loss in red so you can see how much value was lost and the annual rate of decline.

More calculators: compound interest calculator, debt payoff calculator, savings goal calculator, and the full tools list.