ReturnLab

Investment ROI Calculator

Quickly compare investments by their true annualized return, not just total profit.

Initial investment

Final value

Holding period (years)

What you entered

Initial investment: $10,000Final value: $18,500Holding period: 5 years

1
Gain (or loss)
$18,500.00 − $10,000.00= $8,500.00
2
Total ROI
$8,500.00 ÷ $10,000.00 × 100= 85.00%
3
Annualised return (CAGR)
($18,500.00 ÷ $10,000.00)^(1/5) − 1= 13.09%

Result

Total ROI: 85%

A gain of $8,500 over 5 years works out to 13.09% annualised (CAGR) — that's the fairer number to compare against other investments with different holding periods.

Return on investment for common gains and losses

ROI is the gain divided by what you put in: (final - initial) / initial. Every row runs those two numbers through the same calculation this page uses.

Initial investment	Final value	Gain or loss	ROI
$1,000	$1,200	$200	20.0%
$5,000	$6,500	$1,500	30.0%
$10,000	$12,500	$2,500	25.0%
$10,000	$15,000	$5,000	50.0%
$10,000	$20,000	$10,000	100.0%
$25,000	$40,000	$15,000	60.0%
$50,000	$45,000	-$5,000	-10.0%
$100,000	$250,000	$150,000	150.0%

ROI says nothing about time, which is its main weakness: 50% over one year and 50% over ten are the same ROI and very different investments. Use the annualised figure this page also reports, or the CAGR calculator, whenever the holding periods differ. A doubling is exactly 100% ROI, and losses are capped at -100% since you cannot lose more than you invested unless leverage is involved. Fees, taxes and dividends are not included here - subtract costs from the final value before entering it if you want a net figure.

ROI vs. CAGR

Total ROI tells you how much you gained overall. CAGR (Compound Annual Growth Rate) translates that into a per-year rate so you can compare investments of different lengths fairly.

Frequently asked questions

How do you calculate ROI?

ROI = (Final Value − Initial Investment) ÷ Initial Investment × 100. For example, invest $10,000 and sell for $13,000: ROI = ($13,000 − $10,000) ÷ $10,000 × 100 = 30%. This is your total return, regardless of how long you held.

What is a good ROI?

It depends on the asset class. The S&P 500 has averaged about 10% annually (before inflation). Real estate typically returns 8–12% including rental income. A 'good' ROI is one that beats a comparable benchmark — beating a risk-free rate (like Treasury bonds at ~4%) is the minimum bar.

What is the difference between ROI and CAGR?

ROI is the total percentage gain over the entire holding period. CAGR is the annualized rate — it answers 'what steady annual rate would produce this total return?' A 60% ROI over 5 years equals a 9.9% CAGR. Use CAGR to compare investments held for different lengths of time.