ROI Calculator
Simple ROI tells you how much you made; annualized ROI tells you how fast — and that's the number you can actually compare across investments.
How it works
ROI = (Final − Cost) / Cost × 100% CAGR = (Final/Cost)^(1/years) − 1
- ROI alone can mislead: +50% in 1 year is excellent, +50% in 10 years is mediocre. The annualized figure (CAGR) makes different investments comparable.
- CAGR is the constant yearly rate that would take you from cost to final value in the same period.
- Remember to include fees, taxes and dividends in the final value for an honest picture.
FAQ
What is a good ROI? It depends on risk and timeframe. Long-run stock averages are ~10% nominal; savings accounts are far lower with far less risk.
What's the difference between ROI and CAGR? ROI is total percentage gain; CAGR spreads it per year. Only CAGR allows fair comparison across different holding periods.
Can ROI be negative? Yes — a final value below cost gives negative ROI and negative CAGR.