ROI Calculator
Calculate total and annualized return on investment.
📈 ROI = total return. Annualized = yearly average (CAGR). For stocks & real estate.
What Is This Tool?
ROI (Return on Investment) measures how much profit an investment made relative to its cost. This calculator shows total ROI and annualized return (CAGR), so you can compare investments held for different lengths of time.
The Formulas
- Total ROI = (Final Value − Initial Cost) ÷ Initial Cost × 100
- Annualized (CAGR) = (Final/Initial)^(1/Years) − 1
Total vs. Annualized ROI
Total ROI doesn't account for time. A 50% gain in 1 year is excellent; the same 50% gain over 10 years is mediocre (~4% annually). Annualized return (CAGR) lets you compare a 5-year stock investment to a 20-year real estate one on equal footing.
Typical Annual Returns
- S&P 500 (long-term average): ~10% (7% after inflation)
- Bonds: ~4-5%
- Real estate: ~8-10% (with rent + appreciation)
- Savings account: ~2-5% (varies with rates)
- Inflation (US): ~3% historical average
Frequently Asked Questions
Should I compare investments by total or annualized ROI?
Always annualized. Total ROI is meaningless without the time horizon. A 100% gain sounds great — but over 20 years that's just 3.5% per year.
About the ROI Calculator
The ROI Calculator lets you figure out roi calculatorinstantly, without reaching for a spreadsheet or doing the math by hand. Whether you're planning a budget, checking a loan, or working through homework, the tool applies the correct formula behind the scenes and shows the result the moment you enter your numbers.
Unlike a static chart or table, this calculator adapts to your exact inputs. You can adjust any value and see the outcome update in real time, which makes it easy to compare scenarios — for example, "what if the rate were 1% lower?" or "what if I paid an extra $50 a month?"
How to Use This Tool
- Enter the main values the calculator asks for (for example, amount, rate, and time).
- Pick the right unit or option where the tool offers a choice.
- Read the result, which appears instantly below the inputs.
- Adjust any field to test a different scenario — the answer updates without a reload.
- Copy or note the result. Nothing is stored, so close the tab when you're done.
Why Use an Online Calculator?
Browser-based tools like this one have a few real advantages over installed software or manual methods:
- No installation. It opens instantly in any browser, on any operating system.
- Private by default. Everything runs locally, so your data stays on your device.
- Always up to date.There's nothing to update — you always get the latest version when you load the page.
- Free and unlimited. Use it as often as you like, with no account and no caps.
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