ROI Calculator
Work out the total return on an investment, the net profit, and the annualised growth rate (CAGR) from your initial outlay, final value, and holding period.
Total ROI
50%
- Net profit
- £5,000.00
- Annualised return (CAGR)
- 14.47%
- Return multiple
- 1.5
ROI is the simple holding-period return: (Final − Initial) / Initial. The annualised figure is the compound annual growth rate (CAGR) — the constant yearly rate that turns Initial into Final over the holding period: (Final / Initial)^(1/years) − 1.
How to use this calculator
Enter what you originally invested, what the investment is now worth (or what you sold it for), and how many years you held it. The total ROI, net profit, annualised CAGR, and return multiple update as you type.
How the calculation works
Total ROI is the simple holding-period return: (Final − Initial) / Initial, expressed as a percentage. The annualised figure is the compound annual growth rate (CAGR): (Final / Initial)^(1/years) − 1. The return multiple is just Final / Initial, so 1.5× means you got back 1.5 times what you put in.
Worked example
Invest £10,000 in an index fund and sell three years later for £15,000. Total ROI = (15,000 − 10,000) / 10,000 = 50%. CAGR = (15,000 / 10,000)^(1/3) − 1 = 1.5^0.333 − 1 ≈ 14.47% per year. Return multiple = 1.5×.
Frequently asked questions
What is ROI?
ROI (return on investment) is the simplest measure of an investment's performance: the net gain divided by the amount you originally put in, usually expressed as a percentage. A 50% ROI means you ended up with 1.5× your starting money; a −20% ROI means you lost a fifth of it. ROI is a total figure — it does not say anything about how long it took.
What is the difference between ROI and CAGR?
ROI is the total return over the whole holding period. CAGR (compound annual growth rate) is the constant yearly rate of return that, compounded, would turn your initial investment into the final value. A 50% ROI over three years is the same as a CAGR of about 14.47% per year; over ten years it would only be about 4.14% per year. CAGR lets you compare investments held for different lengths of time on a like-for-like basis.
Does this calculator account for fees, dividends, or taxes?
No. It compares a single starting amount against a single ending amount, so any costs or income that happened in between should already be reflected in those two numbers. If you want to include dividends or coupons, add the cash you actually received to the final value. To strip out taxes and fees, subtract them from the final value (or add them to the initial cost basis).
How do I handle a loss?
Enter the final value as it actually is, even if it's less than the initial investment. The ROI will come out negative, the return multiple will be less than 1, and CAGR will be negative — all of which correctly describe an investment that lost money.
Why does the annualised return look much lower than the total ROI?
Because annualising spreads the gain over the whole holding period using compounding. Doubling your money in one year is a 100% CAGR, but doubling it over ten years is only ~7.18% CAGR (because 1.0718^10 ≈ 2). The longer you hold, the more impressive the same total ROI sounds — and the less impressive the same CAGR sounds.
Can I use this for a real-estate, crypto, or business investment?
Yes — the formula is asset-agnostic. As long as you can put a number on what went in and what came out, the ROI and CAGR are well-defined. For property, remember to fold rental income, costs, and refurbishments into the two figures; for a business, treat the sale price (or current valuation) as the final value and your original equity as the initial.