ROI Calculator
Calculate the total return and annualized return (CAGR) on any investment.
Investment
Return
50.00%total ROI
Net gain / loss
$5,000.00
Annualized return (CAGR)
8.45%
Total ROI measures the full-period return; CAGR annualizes it, which is what makes investments of different holding periods comparable.
How this is calculated
ROI% = (Final value − Initial investment) ÷ Initial investment × 100. CAGR% = ((Final value ÷ Initial investment)^(1/years) − 1) × 100.
Pricing is verified against provider pricing pages as of 2026-09-01. AI and cloud pricing changes frequently — confirm the current rate on the provider's own pricing page before budgeting.
Frequently asked questions
What's the difference between total ROI and CAGR?
Total ROI is the overall percentage gain over the entire holding period, regardless of how long that took. CAGR (Compound Annual Growth Rate) annualizes that return, which is what makes it possible to fairly compare investments held for different lengths of time.
Why does a 50% ROI over 5 years not mean 10% per year?
Because returns compound, not add — a 50% total gain over 5 years works out to roughly 8.4% CAGR, not a flat 10%, since each year's growth builds on the previous year's already-grown value.
Can ROI be negative?
Yes — if the final value is lower than the initial investment, both ROI and CAGR will be negative, representing a loss on the investment.
Does this account for dividends or additional contributions?
No — this calculates ROI purely from an initial and final value. If you received income (dividends, rent) along the way or made additional contributions, add those to the final value or account for them separately for an accurate picture.