ROI Calculator
The return on an investment, in total and as a compound yearly rate (CAGR), from what you put in, what it's worth and how long you held it.
CAGR for a doubling, by years held
| Years to double | Yearly return |
|---|---|
| 3 | 25.99% |
| 5 | 14.87% |
| 7 | 10.41% |
| 10 | 7.18% |
| 15 | 4.73% |
| 20 | 3.53% |
How this calculator works
ROI = (end value − amount invested) ÷ amount invested. CAGR = (end ÷ start)^(1 ÷ years) − 1: the steady yearly rate that gets from one to the other.
What it assumes
- No money added or taken out along the way; dividends included in the end value.
Questions people ask
What is the difference between ROI and CAGR?
ROI is the total return over the whole period; CAGR spreads it into a yearly compounded rate, so investments held for different lengths can be compared.
What is a good return on investment?
It depends on the risk: savings accounts pay a few percent; broad US stock indexes have averaged roughly 10% a year over long periods, with big swings.
Does ROI account for time?
No: a 50% return is great over two years and poor over twenty. That is why CAGR, which divides the return into years, is better for comparing.
How do I calculate annualized return?
Divide the end value by the start, raise it to 1 ÷ years, and subtract 1: $10,000 growing to $16,000 in 5 years is 9.86% a year.
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Sources
Updated by the RateHerald team. The maths is tested against worked examples; report a problem.