ROI Calculator
Calculate your return on investment (ROI), annualized CAGR, and net profit in seconds. Enter your initial investment, final value, and holding period. No.
Added May 15, 2026
Input
Used to compute the annualized ROI (CAGR).
Result
Enter a value for initial investment to see your result.
How it works
Calculates total ROI, annualized return (CAGR), and net profit from an initial investment and its final value over a chosen holding period.
Formula
ROI = (Final Value − Initial Investment) / Initial Investment × 100% CAGR = (Final Value / Initial Investment)^(1 / Years) − 1
- Initial Investment
- The amount of money originally invested
- Final Value
- The current or ending value of the investment
- Years
- Holding period in years (used only for CAGR)
- CAGR
- Compound Annual Growth Rate — the smoothed annual return
Step by step
- 01Subtract the initial investment from the final value to get net profit or loss.
- 02Divide the net profit by the initial investment and multiply by 100 to get total ROI as a percentage.
- 03Divide the final value by the initial investment to get the return multiple (e.g., 1.5× = 50% total return).
- 04For annualized ROI (CAGR), raise the return multiple to the power of 1/years, then subtract 1.
- 05A negative net profit means the investment lost value; the ROI will be negative.
Examples
$10,000 invested → $15,000 over 3 years
A $10,000 investment that grows to $15,000 earns a 50% total return and a CAGR of about 14.47% per year over 3 years.
Inputs
- Initial investment:
- 10000
- Final value:
- 15000
- Holding period:
- 3
Result
- Net profit / loss:
- 5000
- Total ROI:
- 50
- Return multiple:
- 1.5
$5,000 invested → $4,200 (a loss) over 1 year
A $5,000 investment that falls to $4,200 has lost $800 — a −16% ROI and the same −16% annualized since the holding period is exactly 1 year.
Inputs
- Initial investment:
- 5000
- Final value:
- 4200
- Holding period:
- 1
Result
- Net profit / loss:
- -800
- Total ROI:
- -16
- Return multiple:
- 0.84
Frequently asked questions
What is the difference between ROI and CAGR?
ROI (Return on Investment) is the total percentage gain or loss over the entire investment period, regardless of how long it took. CAGR (Compound Annual Growth Rate) converts that total return into a smooth annual rate, making it easy to compare investments held for different lengths of time. For a 1-year investment they are identical; for longer periods, CAGR is always lower than total ROI.
Can ROI be negative?
Yes. If the final value is less than the initial investment, the net profit is negative and so is the ROI. For example, investing $1,000 and ending with $800 gives a −20% ROI.
What is a good ROI?
It depends on the asset class and time period. The S&P 500 has historically averaged roughly 10% annualized before inflation (about 7% real). Real estate, bonds, and savings accounts vary widely. Always compare ROI to a relevant benchmark and adjust for risk.
Does this calculator account for taxes or fees?
No — it calculates gross ROI based on the values you enter. To get after-tax or after-fee return, use the net proceeds (after fees and taxes) as your final value.
What is a return multiple?
The return multiple (also called the MOIC — Multiple on Invested Capital) shows how many times the investment grew. A 2× multiple means the investment doubled. It is calculated as Final Value ÷ Initial Investment.