ROI Calculator
Calculate return on investment (ROI) and annualized return. Enter your starting and ending values and time held to see total and yearly returns.
Total ROI
50.00%
over 3.0 yrs
Net Profit / Loss
+$5,000.00
Annualized Return (CAGR)
14.47%
per year
Frequently Asked Questions
What is the difference between total ROI and annualized return?
Total ROI measures the overall gain or loss relative to your initial investment, regardless of how long you held it. Annualized return (CAGR) spreads that return across the number of years held, letting you compare investments of different lengths on an apples-to-apples basis.
What is a good ROI?
A 'good' ROI depends on asset class and risk. The S&P 500 has historically averaged around 10% annually before inflation. Real estate and bonds tend to be lower; individual stocks or private equity can be higher but carry more risk. Always compare ROI against benchmarks relevant to the investment type.
Does ROI account for how long I held the investment?
Total ROI does not — a 50% gain over 1 year and a 50% gain over 10 years show the same total ROI. Annualized return (CAGR) does account for time, making it the better metric when comparing investments held for different periods.