Skip to content
Toolore

Calculators

ROI Calculator

Enter what you put in and what it is worth now to get the return as a percentage. Add the holding period and you also get the annualised figure — the only one worth comparing between investments held for different lengths of time.

What the investment is worth now, or what you sold it for

Optional — enables the annualised return

Enter what you invested and what it is worth now.

How to use this tool

  1. Enter the amount you originally invested, including any costs of acquiring it.
  2. Enter the current or final value.
  3. Optionally enter the holding period in years to get the annualised return.

Formula and method

Return on investment

ROI = (final − initial) ÷ initial × 100

Compound annual growth rate

CAGR = ((final ÷ initial)^(1 ÷ years) − 1) × 100

CAGR is the constant annual rate that would have taken you from the starting value to the final one. It is undefined when the final value is zero or negative, so the calculator withholds it rather than inventing a figure.

Worked examples

$1,000 grows to $1,500 over two years

  1. ROI: (1500 − 1000) ÷ 1000 = 0.5, or 50%
  2. CAGR: (1500 ÷ 1000)^(1÷2) − 1 = 0.2247

A 50% total return, which is 22.47% a year.

The same 50% return spread over ten years

  1. CAGR: 1.5^(1÷10) − 1 = 0.0414

Still 50% in total, but only 4.14% a year — a very different investment.

Notes and limitations

  • A total return figure ignores time entirely. Always compare on the annualised rate, or a fast small gain will look worse than a slow large one.
  • Fees, commissions, taxes and any income taken along the way are not included. Add acquisition costs to the initial amount for a truer picture.
  • CAGR describes a smooth average. The actual path may have been far more volatile, and the average conceals that risk completely.
  • Money added or withdrawn during the period is not modelled. That needs a money-weighted return such as IRR, which this tool does not calculate.
  • Inflation is not deducted. A 5% annual return while prices rise 3% is closer to 2% in real terms.

Frequently asked questions

How do I calculate ROI?

Subtract what you invested from what it is now worth, divide by what you invested, and multiply by 100. A $1,000 investment now worth $1,500 has returned 50%.

What is a good ROI?

There is no universal figure — it depends entirely on the risk taken, the time involved and what else you could have done with the money. Comparing an annualised return against a low-risk benchmark for the same period is more informative than any absolute number.

What is the difference between ROI and CAGR?

ROI is the total return over the whole period regardless of how long that was. CAGR converts it into an annual rate, which is what lets you compare a two-year holding against a ten-year one.

Why is there no annualised figure for my loss?

A compound growth rate cannot be defined when the final value is zero or negative — there is no constant rate that reaches it. The calculator leaves it blank rather than showing a meaningless number.

Related tools