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ROI and Annualized Return (CAGR) Calculator

Enter what you invested, what it is worth now and how long you held it. You get total ROI and the annualized return that makes different holding periods comparable.

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yrs

Annualized return (CAGR)

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Total ROI
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Gain or loss
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Growth multiple
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Tips for using the roi calculator

  • Compare investments by CAGR, not total ROI, when holding periods differ.
  • Subtract inflation from CAGR to get the real return.
  • For rental property, the rental ROI calculator handles cash flow and cap rate.

How the roi calculator works

ROI measures the total gain relative to the amount invested. On its own it ignores time, so a 50% return over 2 years and over 10 years look the same. CAGR fixes that by finding the steady yearly rate that turns the starting value into the ending value.

ROI = (Final − Initial) ÷ Initial
CAGR = (Final ÷ Initial)1 ÷ years − 1

Include dividends or rent you received in the final value, and subtract fees and costs. CAGR assumes a single deposit at the start; if you added money over time, an internal rate of return (XIRR in spreadsheets) is the better measure.

Worked example

$10,000 invested grows to $16,500 in 5 years. Total ROI is 65% and the gain is $6,500. The CAGR is 1.650.2 − 1 = 10.53% a year. A different investment that returned 80% over 8 years has a lower CAGR of 7.62%, even though its total ROI is higher.

Frequently asked questions

What is a good ROI?

It depends on risk and time. The S&P 500 has historically returned about 10% a year before inflation, which many investors use as a benchmark.

What is the difference between ROI and CAGR?

ROI is the total percentage gain. CAGR is the equivalent constant yearly growth rate over the holding period.

Can CAGR be negative?

Yes. If the final value is below the initial investment, CAGR is negative.

Can I use months?

Enter fractions of a year, such as 0.5 for six months. Annualizing very short periods can exaggerate results.

Updated October 2026. Results are estimates for education, not financial or medical advice. All math runs in your browser; nothing you type is sent anywhere.

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