What Is the Investment ROI Calculator?
An investment ROI calculator measures how profitable an investment was. It computes the total return on investment and, when you supply a holding period, the annualized return (CAGR) so you can compare opportunities of different sizes and durations.
How to use this calculator
Type your numbers into the fields above. The results change the moment you edit any input, so you can try one scenario after another and see exactly what moves. Most calculators show a short summary of the key figures, a line-by-line breakdown underneath, and — where it applies — a year-by-year schedule you can export to a spreadsheet. Everything runs in your browser; nothing is stored or sent anywhere. Treat the output as a planning estimate, not as final word on a real decision.
The Formula
ROI = (final value − amount invested) ÷ amount invested × 100. The annualized return, or CAGR, is (final ÷ initial)^(1/years) − 1. CAGR smooths the result into a single yearly rate, making multi-year investments comparable.
Worked Example
Invest $5,000 and sell for $8,500 after 5 years. The total ROI is 70%, and the annualized return is about 11.2% per year — a clearer picture than the raw 70% figure alone.
Tips for the Most Accurate Estimate
- Always annualize returns before comparing different investments.
- Include all costs and fees in the final value for accuracy.
- Account for taxes, which reduce your net ROI.
- Use ROI for past results and projected returns for planning.
- Compare against a benchmark like an index fund.
Frequently Asked Questions
Q: What is the difference between ROI and CAGR?
ROI is the total percentage gain over the whole period; CAGR converts that into an average yearly rate, which is fairer for long holdings.
Q: Should I include dividends?
Yes. Add reinvested or received dividends to the final value so your ROI reflects total return.
Q: Does ROI account for risk?
No. A high ROI may come with high risk; compare returns alongside volatility and your goals.