Calculate the total return on investment and the annualized return for any investment.
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Your Return
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Dollar Gain—
Annualized Return (CAGR)—
Formula
ROI = (Final Value - Initial Investment) / Initial Investment. CAGR = (Final / Initial)^(1/years) - 1.
Example
A $10,000 investment growing to $15,000 over 3 years has a 50% total ROI, equal to about a 14.5% annualized return.
Not tax or financial advice. This calculator provides general estimates based on published 2026 figures. Always confirm important figures with the IRS, SSA, your state tax agency, a licensed lender, or a qualified professional.
Frequently Asked Questions
What is the difference between ROI and CAGR?
ROI is the total percentage gain over the entire holding period. CAGR spreads that gain evenly across each year, making it easier to compare investments held for different lengths of time.
Does ROI account for risk?
No, ROI only measures return, not the risk taken to achieve it. Two investments with the same ROI can carry very different levels of risk.