Investment Return Calculator
Calculate your total return, ROI percentage, and annualized return (CAGR) on any investment.
Total Return ($)
$15,000.00
Total Return (%)
150.00%
Annualized Return / CAGR (%)
20.11%
Investment Growth
Initial
$10,000.00
Final
$25,000.00
Your investment grew by 150.00% over 5 years with a CAGR of 20.11%.
Understanding Investment Returns
Investment return measures the gain or loss on an investment relative to the amount invested. Whether you hold stocks, bonds, mutual funds, or real estate, understanding your total return and annualized return helps you evaluate performance and compare investment options on equal footing.
What Is ROI (Return on Investment)?
ROI is the total percentage gain or loss on your investment. It is calculated by dividing the net profit (final value minus initial investment) by the initial investment and multiplying by 100. ROI is simple to understand but does not account for the time period of the investment, which is why CAGR is also important.
What Is CAGR (Compound Annual Growth Rate)?
CAGR represents the rate at which an investment would have grown if it had grown at a steady rate each year. It smooths out the effects of volatility and provides a single annualized return figure. CAGR is especially useful for comparing investments held over different time periods.
ROI vs. CAGR: When to Use Each
Use ROI when you want a quick snapshot of total profit or loss. Use CAGR when comparing investments of different durations or when you want to understand the average annual growth rate. For example, a 100% total return over 10 years is very different from a 100% return over 2 years, and CAGR captures that difference.
Frequently Asked Questions
How is total return calculated?
Total return is calculated by subtracting your initial investment from the final value. The total return percentage divides that gain by the initial investment. For example, if you invested $10,000 and it grew to $25,000, your total return is $15,000 or 150%.
What is a good CAGR?
A good CAGR depends on the asset class and market conditions. Historically, the US stock market has returned roughly 7-10% annually after inflation. A CAGR above this range is generally considered strong, while bonds and savings accounts typically offer lower annualized returns.
Does this calculator account for fees and taxes?
This calculator computes raw return based on the initial and final values you enter. It does not separately factor in trading fees, fund expense ratios, or taxes on capital gains. For a more accurate picture, subtract any fees and taxes from your final value before entering it.