ROI Calculator
Calculate return on investment (ROI) percentage, net profit, and annualized ROI (CAGR). Works for stocks, real estate, business investments, and more.
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ROI
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Net Profit / Loss —
Annualized ROI (CAGR) —
Total Return Multiple —
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Total ROI
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Annualized Return (CAGR) —
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Raw Returns
Gross Profit —
Total ROI —
CAGR (Annualized Return) —
Total Return Multiple —
After Costs
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After-Tax Profit —
After-Tax ROI —
Adjusted Returns
Real ROI (Inflation-Adjusted) —
Benchmark Portfolio Value —
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How to Use This Calculator
- Enter your Initial Investment — the total cost or amount invested.
- Enter the Final Value — current value or total amount received back.
- Enter the Time Period in years — use decimals for partial years (0.5 = 6 months).
- See your ROI percentage, Net Profit, and Annualized ROI (CAGR).
Formula
ROI = (Final Value − Initial Investment) ÷ Initial Investment × 100
CAGR (Annualized ROI) = (Final ÷ Initial)^(1/Years) − 1
Net Profit = Final Value − Initial Investment
Example
Example: $10,000 invested, grew to $14,500 over 3 years.
- Net Profit: $4,500
- ROI: 45%
- Annualized ROI (CAGR): 13.2%/year
- Return Multiple: 1.45×
Frequently Asked Questions
- ROI measures the gain or loss from an investment relative to its cost. ROI (%) = (Final Value − Initial Investment) ÷ Initial Investment × 100. A 45% ROI means you made $45 for every $100 invested.
- ROI shows total return without considering time. Annualized ROI (CAGR — Compound Annual Growth Rate) normalizes return to a per-year rate. A 45% ROI over 3 years = 13.2% CAGR, making it comparable to other investments.
- It depends on the investment type and timeframe. Stock market average: ~10%/year. Real estate: 7–12%/year. High-yield savings: 4–5%/year. Business investments: 15–30%+ is common. Compare CAGR to relevant benchmarks.
- Businesses use ROI to compare projects. If Project A has a 25% ROI and Project B has a 15% ROI over the same period, Project A is more efficient per dollar invested. ROI must be weighed against risk and capital requirements.
- CAGR (Compound Annual Growth Rate) = (Final Value ÷ Initial Value)^(1/Years) − 1. For a $10,000 investment that grew to $14,500 over 3 years: ($14,500/$10,000)^(1/3) − 1 = 13.2% CAGR.
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Sources & References (5) ▾
- SEC Investor.gov — Introduction to Investing — U.S. Securities and Exchange Commission
- FINRA — Understanding Return on Investment — Financial Industry Regulatory Authority
- Federal Reserve — Investment and Capital Formation Research — Federal Reserve
- IRS — Publication 550: Investment Income and Expenses — Internal Revenue Service
- CFA Institute — Investment Performance Standards (GIPS) — CFA Institute