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ROI Calculator
Measure the profitability of your investments. Calculate total ROI and annualized growth.
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Measure the profitability of your investments. Calculate total ROI and annualized growth.
Enter capital and return data.
For Annualized ROI (CAGR) calculation.
Annualized ROI (CAGR)
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Money Multiple
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Return on Investment (ROI) is a fundamental profitability metric used to evaluate the efficiency of an investment or to compare the performance of several different assets. By measuring the gain or loss relative to the initial cost, ROI provides a clear picture of financial success regardless of the transaction's scale.
ROI = [(Final Value - Initial Cost) / Initial Cost] × 100This formula calculates the percentage growth of your capital. To determine the Annualized ROI (useful for multi-year comparisons), we use the CAGR formula: [(Final Value / Initial Cost)^(1 / Years)] - 1.
Historically, the S&P 500 averages ~10% annually. A 'good' ROI varies by risk level, but generally, any return that significantly outpaces inflation and low-risk bonds is considered successful.
Annualized ROI (CAGR) allows you to compare investments held for different timeframes. For example, a 20% return over 1 year is superior to a 20% return over 10 years.
Yes. For a 'Total Return' calculation, you should add any dividends, rent, or interest earned during the holding period to the final sale price.
No, this is a gross ROI calculation. Depending on your region, you may owe taxes on your net profit, which would lower your actual 'after-tax' return.
"Federal tax estimates are based on 2024 brackets. Consult a tax professional for official filing."