ROI Calculator
Return on investment and CAGRRuns locally · nothing uploaded
ROI
+50%
Annualized return (CAGR)
+14.47%
Profit
5,000
Results are estimates for reference only and are not financial, lending or tax advice. Confirm actual rates and taxes with your lender or tax authority.
How it works
When to use it
- Measure the return on an investment, project or campaign.
- Compare investments held for different lengths of time.
Formula
ROI = (final value − amount invested) ÷ amount invested × 100%CAGR = (final value ÷ amount invested)^(1 ÷ years) − 1The constant yearly rate that produces the same result.
Worked example
Given: $10,000 invested, worth $15,000 after 3 years
- Profit = 15,000 − 10,000 = $5,000.
- ROI = 5,000 ÷ 10,000 = 50%.
- CAGR = (15,000 ÷ 10,000)^(1/3) − 1 ≈ 14.47%.
Result: 50% total, about 14.47% a year — not 50% ÷ 3 ≈ 16.67%.
Reading the result
- ROI ignores time. Use CAGR to compare investments with different holding periods.
Limitations
- Assumes one deposit and one withdrawal. With multiple cash flows, use IRR / XIRR instead.
- Enter the final value after fees and taxes.
How to use
- 1Enter the amount invested and the final value.
- 2Optionally enter the number of years.
- 3Read the ROI and annualized return.
FAQ
How is ROI calculated?
ROI = (final value − cost) ÷ cost × 100%.
What is annualized return (CAGR)?
CAGR = (final ÷ initial)^(1 ÷ years) − 1. It lets you compare investments held for different lengths of time.
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