ROI Calculator — Total & Annualized Return

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

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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.

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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.