Calculate Return on Investment (ROI), annualised return, and net profit for any investment. Enter your initial investment, final value, and holding period.
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The amount you put in — purchase price, initial capital, or cost of the project.
Current value or exit value. Can be less than initial for a loss calculation.
Time between initial investment and final value. Used to calculate annualised CAGR.
ROI gives the total return. CAGR (annualised return) adjusts for time — a 35% ROI over 3 years = 10.5% CAGR. Always compare investments using CAGR, not raw ROI, since time periods differ.
It depends on the investment type and risk. Stock market: 10–12% CAGR historically. Real estate: 8–12%. Fixed deposits: 6–8%. A good ROI is one that beats inflation and the next-best alternative (opportunity cost).
ROI is total return regardless of time. CAGR is the annualised rate that would produce the same total return. A 100% ROI over 10 years = 7.18% CAGR. Over 2 years = 41.4% CAGR. Always compare CAGR.
This calculator uses total value (price + any income reinvested). Enter the total final value including dividends received for an accurate total return calculation.
Initial = purchase price + renovation costs. Final = current market value (or sale price). Also factor in rental income received over the period for total return.
Most businesses target ROI above their cost of capital (typically 10-15%). A return above 20% is considered strong. Compare ROI to industry benchmarks and alternative investments to assess true performance.