ROI and CAGR Calculator
Measure how much an investment gained or lost in total and per year, so you can compare investments held for different lengths of time.
Result
Enter your values and select Calculate to see the result.
How to use this calculator
- Enter the amount invested and the final value, including any dividends or income you received.
- Optionally enter how many years you held it to get the annualized return.
Formula
ROI = (final − invested) ÷ invested × 100%CAGR = (final ÷ invested)^(1 ÷ years) − 1
CAGR is the steady yearly growth rate that would turn the starting amount into the final amount.
Worked example
A five-year investment
10,000 grows to 15,000 in 5 years.
ROI = 5,000 ÷ 10,000 = 50%. CAGR = 1.5^(1/5) − 1 ≈ 8.45% a year.
Assumptions and limitations
- Assumes a single investment at the start. For regular contributions, the money-weighted return differs.
- Taxes, fees and inflation are not deducted.
Frequently asked questions
Why not just divide ROI by the number of years?
Returns compound. 50% over 5 years is 8.45% a year, not 10%, because each year’s gains build on the previous ones.
Can ROI be negative?
Yes. If the final value is below the amount invested, the ROI and CAGR are negative, showing a loss.