About This Calculator
This calculates two different but related numbers from your initial and final investment value: the simple ROI, which is your total percentage gain or loss over the whole holding period, and the annualized ROI (also called CAGR, Compound Annual Growth Rate), which converts that total return into an equivalent constant yearly rate. The second number is what actually lets you compare two investments fairly when they were held for different lengths of time — an investment that doubled in 10 years is very different from one that doubled in 2. If you enter a benchmark rate, like what a savings account or index fund might return, it also shows whether your investment beat that rate. Everything is calculated locally in your browser.
Simple ROI vs. Annualized ROI
Simple ROI(Final − Initial) ÷ Initial × 100 — your total percentage return over the entire period, regardless of how long that period was.
Annualized ROI (CAGR)[(Final ÷ Initial)^(1÷years) − 1] × 100 — the constant yearly growth rate that would take your initial value to your final value over that many years, accounting for compounding.
Why they can look so differentAn 80% return over 3 years and an 80% return over 10 years have identical simple ROI, but very different annualized ROI (about 21.6% per year vs. about 6.1% per year) — the shorter timeframe means the same total gain represents much faster growth.
What this doesn't includeAdditional deposits or withdrawals during the holding period, taxes on gains, transaction fees, and dividends or distributions not reflected in the final value you enter.
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