ROI Calculator
Free ROI calculator. Compute return on investment and annualized CAGR for any investment, with optional recurring contributions. No signup.
What is an ROI calculator?
An ROI calculator measures the return on an investment — total profit as a percentage of what you put in — and converts it into an annualized figure so you can compare investments of different lengths and cash flows fairly.
How this calculator works
- Enter your initial investment, its current or final value, and how many years you held it.
- Optionally add monthly contributions to capture ongoing investing like a regular savings plan.
- ROI is (value − total contributed) ÷ total contributed × 100.
- The annualized return (CAGR) solves for the steady yearly rate that produces the same end value.
How to use the result
- Compare projects by CAGR, not raw ROI — a 60% ROI over 8 years is weaker than a 30% ROI over 2.
- Include everything you put in: purchase price, fees, repairs, and any reinvestment. A lopsided input inflates the return.
- Match the annualized return against a safe baseline — if your investment returns less than a bond, the risk wasn’t worth it.
- For business decisions, add risk: a 20% CAGR on a stable asset beats a 30% CAGR on a speculative one if you can’t afford the loss.
What’s the difference between ROI and CAGR?
ROI is the total percentage gain over the whole holding period — simple and headline-friendly. CAGR (compound annual growth rate) is the equivalent steady annual return, which removes the time distortion: 50% over 5 years is about 8.4% a year. For comparing anything held different lengths, use CAGR.
Common mistakes
- Quoting total ROI as an annual figure. A 50% ROI over 5 years isn’t 10% a year — compounding makes it about 8.4%.
- Ignoring contributions. If you added money along the way, the true return is lower than the simple ending-minus-starting number.
- Forgetting taxes and fees. Real returns are what you keep after costs — subtract them from the final value.
ROI on a side project or investment can be planned forward with the investment calculator’s growth projection, and if the money came from a loan, the simple loan calculator shows what the borrowing side costs.