Calculate your investment return — both simple ROI and annualized rate (CAGR).
$
$
Total Profit
$6,000
ROI
60.00%
Simple return
Annualized ROI
9.86%
CAGR
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Results are estimates only and should not be considered financial advice. Always consult a qualified professional before making financial decisions.
Formula
ROI = (FV − IV) / IV × 100, annualized = ((FV / IV)^(1/years) − 1) × 100
Worked Example
Invest $10,000, sell for $16,000 after 5 years: profit = $6,000, ROI = 60%, annualized ≈ 9.86%.
Frequently Asked Questions
What is ROI and why does it matter?
Return on Investment (ROI) measures the profit from an investment as a percentage of its cost. A higher ROI means a more efficient investment. It helps compare the performance of different investments on an equal footing.
What is the difference between simple ROI and annualized ROI?
Simple ROI is the total return over the entire period: (final value − initial value) / initial value × 100. Annualized ROI (or CAGR) converts that into an average yearly rate, which is more meaningful for investments of different durations.
How do I calculate annualized ROI (CAGR)?
CAGR = ((final value / initial value)^(1/years) − 1) × 100. For example, growing $10,000 to $16,000 in 5 years: (1.6)^(0.2) − 1 = 9.86% per year.
Should I factor in fees and taxes?
The true return on your investment is net of fees and taxes. Brokerage fees, fund expense ratios, and capital gains taxes all reduce your actual returns. This calculator shows a gross figure — always account for costs separately.
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