How to use the roi calculator
- Enter the amount invested.
- Enter the final value including income received.
- Enter the holding period in years.
The formula
ROI = (Final − Invested) ÷ Invested × 100; CAGR = (Final ÷ Invested)^(1/years) − 1
CAGR is the steady yearly rate that would turn the starting amount into the final amount over the period.
Worked example
20,000 growing to 34,500 over 4 years is a 72.5% total ROI — about 14.6% a year compounded.
Tips from the numbers
- Always compare annualized figures; a 50% gain over ten years is weaker than 30% over two.
- Include all costs (fees, taxes, maintenance) for an honest ROI.
- For business projects, compare ROI with the cost of capital.
Watch: learn the concept
Frequently asked questions
Is ROI the same as profit?
ROI expresses profit relative to what you invested, which makes different-sized investments comparable.
Can CAGR hide volatility?
Yes. CAGR smooths the path; the actual journey may include large ups and downs.
Should dividends be included?
Yes — add income received to the final value for total return.
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