Net Gain/Loss
$8,000.00
Return On Investment (ROI) Calculator
Calculate total and annualized return on an investment.
Total ROI
80.00%
Annualized ROI (CAGR)
12.47%
Initial Investment
$10,000.00
Final Value
$18,000.00
What is the Return On Investment (ROI) Calculator?
Return on investment (ROI) measures how much an investment gained or lost relative to what it cost. This calculator reports both the total ROI over the whole holding period and the annualized return (CAGR) — which lets you compare investments held for different lengths of time on equal footing.
The formula
Two views of the same investment:
Total ROI = (Final − Initial) ÷ Initial × 100
CAGR = ((Final ÷ Initial)^(1/years) − 1) × 100- Initial
- what you originally put in
- Final
- what the investment is worth at the end
- years
- how long you held it
Total ROI answers "how much did it grow?"; CAGR answers "at what steady yearly rate?"
Worked example
Invest $10,000 and it grows to $18,000 after 5 years.
The net gain is $8,000, a total ROI of 80%. Spread across 5 years, that's a compound annual growth rate of 12.47% — the steady yearly return that produces the same result.
Prefer your own numbers? Enter them in the calculator above — it recomputes instantly.
Key terms
- ROI
- The total percentage gain or loss on an investment relative to its cost.
- CAGR
- Compound annual growth rate — the equivalent smooth yearly return.
- Holding period
- How long the investment was held, start to finish.
- Net gain
- Final value minus initial investment, in dollars.
Frequently asked questions
Why report both ROI and CAGR?
An 80% total return sounds large, but over 5 years it's 12.47% a year. CAGR stops long holding periods from flattering an investment.
Does ROI account for risk, fees or taxes?
No. Basic ROI ignores volatility, fees and taxes — subtract those separately for a true picture.
Can ROI be negative?
Yes. If the final value is below what you invested, both ROI and CAGR are negative.