ROI Calculator
Calculate return on investment, annualized ROI, and profit/loss for any investment.
Calculate return on investment, annualized ROI, and profit/loss for any investment.
The amount you originally invested.
The current or projected value of the investment.
How long you held or plan to hold the investment.
ROI is a simple measure of total gain relative to cost. CAGR (Compound Annual Growth Rate) normalizes ROI over a time period, showing what constant annual return would produce the same result — making it better for comparing investments.
ROI = (Final Value − Initial Investment) / Initial Investment × 100% | CAGR = (Final / Initial)^(1/Years) − 1Investing $10,000 in a stock that grows to $15,000 over 5 years yields a 50% ROI, but only an 8.45% CAGR. This is a useful correction — a 50% gain sounds great, but 8.45%/year is a more useful comparison against alternatives.
A 20% ROI in 1 year (20% CAGR) significantly outperforms a 20% ROI over 5 years (3.71% CAGR). ROI alone can mislead — always consider the time dimension when evaluating investment performance.
ROI is computed as (netProfit / initialInvestment) × 100. Annualized ROI uses the CAGR formula: (finalValue / initialInvestment)^(1/years) − 1. Net profit is finalValue − initialInvestment.