ROI Calculator

ROI (Return on Investment) measures how much profit you made relative to what you put in, expressed as a percentage. The formula is ROI = (Final Value - Initial Investment) / Initial Investment x 100. Invest $10,000 and end up with $12,500, and your ROI is 25%.

CAGR (Compound Annual Growth Rate) is the steady annual rate that would grow your initial investment into the final value over a given number of years. It lets you compare investments held for different lengths of time on equal footing. A $10,000 investment that grows to $16,000 over 5 years has a CAGR of about 9.86% per year, even if the actual year-to-year gains were uneven.

It depends on the asset class and risk level. Broad US stock indexes have averaged roughly 10% per year over the long run, or about 7% after inflation. Real estate has historically landed around 8-12%, while Treasury bonds typically yield less. Higher ROI almost always means higher risk, so compare your result against a relevant benchmark, not a universal target.

Yes, for a realistic picture. Enter your final value after subtracting brokerage commissions, fund expense ratios, and any capital gains taxes. Gross ROI and net ROI can differ a lot: a 20% gross return shrinks once you take out a couple percent in fees and a tax bill on the gains.

ROI gives you a single percentage gain from start to finish, regardless of when cash moved. IRR (Internal Rate of Return) accounts for the timing and size of multiple cash flows, which matters when you made several contributions or took partial withdrawals along the way. This calculator handles ROI and CAGR; use a dedicated IRR calculator for multi-cash-flow scenarios.