ROI Calculator
Calculate return on investment, net profit and annualized return.
ROI Calculator
Calculate return on investment, net profit and annualized return.
Starts in your browser. Instructions are below.
How to use ROI Calculator
- 01Enter your initial investment and any additional costs or fees.
- 02Enter the final value, what the investment is worth now or what you sold it for.
- 03Add the holding period in years to see the annualized return alongside the headline figure.
About ROI Calculator
This ROI calculator divides net profit by total cost to give return on investment, then also shows the annualized return (CAGR) so you can compare investments held for different lengths of time. Plain ROI ignores time: doubling your money is a 100% return whether it took one year or ten, and those are very different outcomes.
The compound annual growth rate fixes that by expressing the return as the steady yearly rate that would produce the same result. For example, turning $10,000 into $14,000 over 2 years is a 40% ROI, but only about an 18.3% CAGR. Include fees and costs in your investment figure, since this calculator adds any costs you enter to your initial investment before calculating the return.
Frequently asked questions
- What is a good ROI?
- It depends on the risk and time frame of the investment. The broad stock market has averaged roughly 10% a year before inflation over long periods.
- What is CAGR?
- CAGR is the constant annual growth rate that would turn your starting amount into the final value over the same holding period, which this calculator shows next to your raw ROI.
- Should I include fees in the calculation?
- Yes. Add them using the 'Additional costs' field, or the return will look better than it actually was.
- Why does my ROI and CAGR look so different?
- ROI is the total return over the whole period, while CAGR spreads that return evenly across each year, so longer holding periods show a lower CAGR for the same ROI.
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