ROI Calculator
Calculate return on investment as a percentage. Includes annualized return (CAGR) when a holding period is provided.
Investment
Return on investment
+30%
Net profit: $3,000.00
Annualized return (CAGR)
9.14% per year
Frequently Asked Questions about the ROI Calculator
What is ROI?
Return on Investment measures profit relative to cost as a percentage. ROI = (Final Value - Initial) / Initial x 100.
What is annualized return (CAGR)?
Compound Annual Growth Rate. The constant annual rate that would turn the initial investment into the final value over the given years. Lets you compare investments held for different time periods.
What is a good ROI?
Depends on risk and asset class. Public stocks long-term average about 7-10% annualized. Real estate 8-12%. Treasury bonds 3-5%. Above-market ROI usually means above-market risk.
Should ROI include fees and taxes?
For a realistic picture, yes. Net ROI subtracts all transaction fees, management fees, and taxes from the final value before calculating.
What is the difference between ROI and IRR?
ROI is a single-period percentage gain. IRR (Internal Rate of Return) handles multiple cash flows over time and accounts for the timing of each. This calculator covers ROI and CAGR, not IRR.