ROI Calculator
Work out the return on an investment, net profit, total ROI percentage, and the annualized (CAGR) return when you hold it over multiple years.
Net profit
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Show the math
ROI measures gain relative to what you put in:
ROI = (final − initial) / initial × 100
CAGR = (final / initial)1/years − 1
Total ROI is the simple percentage gain. The annualized return (CAGR) is the steady yearly rate that turns your initial cost into the final value over the holding period, useful for comparing investments held for different lengths of time. For accuracy, use amounts net of fees.
What this does
An ROI calculator measures how much an investment gained relative to its cost. Enter what you put in and what it is now worth and it returns your net profit, total ROI as a percentage, and (over multiple years) the annualized (CAGR) return.
How to use it
- Enter the initial cost (what you invested).
- Enter the final value (what it is worth or sold for).
- Optionally enter the holding period in years.
- Read your net profit, total ROI, and annualized return.
How it works
Total ROI is (final value − initial cost) ÷ initial cost. When you add a holding period, the annualized return (CAGR) is (final ÷ initial)^(1 ÷ years) − 1, the steady yearly rate that connects the two figures.
Understanding your result
Total ROI tells you the overall gain; the annualized return lets you compare investments held for different lengths of time. A high total ROI earned slowly can annualize lower than a smaller gain earned quickly.
Example
Turning $10,000 into $13,000 is a $3,000 profit and a 30% total ROI. Held over 3 years, that is an annualized return of about 9.1% a year.
Sources & methodology
- U.S. SEC Investor.gov, Investing Basics, Risk, return, and diversification
- U.S. SEC Investor.gov, Compound Interest Calculator, How returns compound over time
Last updated .
Frequently asked questions
How is ROI calculated?
ROI = (final value − initial cost) ÷ initial cost, shown as a percentage. It tells you how much you gained relative to what you put in.
What is annualized ROI?
Annualized return (CAGR) is the steady yearly rate that would turn your initial cost into the final value over the holding period: (final ÷ initial)^(1/years) − 1. It lets you compare investments held for different lengths of time.
Should I include fees?
For accuracy, use the net amount you actually invested as the initial cost and the net proceeds as the final value, so fees are reflected in the return.
Do you keep my inputs?
No, the calculation is done entirely in your browser.
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