ROI Calculator, Total & Annualized Return

By the MoneyCalcsHub editorial teamLast updated:

Compute return on investment in total percent and as an annualized (CAGR) rate.

—

Formula

ROI = (final − invested) / invested × 100% ; CAGR = (final/invested)^(1/years) − 1

Examples

InputResult
$10k → $16k in 3 yrs+60% ROI · 16.96%/yr
$5k → $4k in 2 yrs−20% ROI · −10.56%/yr
$10k → $20k in 10 yrs+100% ROI · 7.18%/yr

Frequently Asked Questions

What is annualized return (CAGR)?

CAGR is the constant yearly rate that would take your initial investment to the final value over the holding period, it makes different investments comparable.

Why is annualized return lower than total ROI?

Compounding: earning 60% over 3 years means about 17% per year, not 20%, because each year grows on the previous year's balance.

Does ROI include dividends or rent?

Only if you add them to the final value, include all cash received from the investment, not just its ending price.

Related Calculators

Stock Profit CalculatorDividend Yield CalculatorReal Return Calculator (Inflation-Adjusted)SWP Calculator With InflationCAGR Calculator (Compound Annual Growth Rate)Cap Rate Calculator, Net Operating Income Over Value
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, investment, tax or legal advice. Results are estimates, actual returns, rates and terms vary. Consult a qualified financial professional before making financial decisions.

How this page is built and kept current. Written and fact-checked by the MoneyCalcsHub editorial team. We do not sell financial products and we accept no payment to change a result, the arithmetic on this page runs in your own browser from the numbers you type.

Official sources used on this page:

Source-dependent figures are reviewed when the cited issuer publishes an update. Worked examples show the formula applied to the listed inputs; interactive results are calculated in your browser.

Spotted an error? Write to [email protected], corrections are published on the page and the last-updated date changes with them. Full process: editorial policy.