ROI Calculator
Free ROI calculator. Calculate simple ROI, annualized return (CAGR), and compare investments. Includes future value projections.
$
$
+50.00%
+$5,000
1.50x
Investment Summary
Initial Investment
$10,000
Final Value
$15,000
ROI Formulas
Simple ROI: (Final Value - Initial Investment) / Initial Investment × 100
CAGR: (Final Value / Initial Investment)^(1/Years) - 1
Gain: Final Value - Initial Investment
Multiplier: Final Value / Initial Investment
🔒 Fast, free math calculators that run in your browser. No uploads, 100% private.
Last updated: January 2026
Related Calculators
Frequently Asked Questions
What is ROI and how do I calculate it?
ROI (Return on Investment) measures profit relative to cost. Simple ROI = (Gain - Cost) / Cost × 100. Investing $10,000 and receiving $12,000 back: ($12,000 - $10,000) / $10,000 × 100 = 20% ROI. This doesn't account for time—a 20% return in 1 year differs greatly from 20% over 10 years.
What is CAGR and why is it important?
CAGR (Compound Annual Growth Rate) is the annualized return accounting for compounding. Formula: (Final/Initial)^(1/Years) - 1. $10,000 growing to $20,000 in 7 years: ($20,000/$10,000)^(1/7) - 1 = 10.4% CAGR. Use CAGR to compare investments of different durations fairly.
What's a good ROI for investments?
Depends on risk and type. Stock market historical average: 7-10% annually (after inflation: 5-7%). Bonds: 3-5%. Real estate: 8-12% (including appreciation and rental income). Startups aim for 20%+ but have high failure rates. Compare against risk-free alternatives like Treasury bonds (4-5%).
How do I compare investments with different time periods?
Always use annualized returns (CAGR). A 50% return over 5 years = 8.4% CAGR. A 30% return over 2 years = 14% CAGR. The shorter investment actually performed better per year. Also consider: taxes, fees, liquidity, and risk. A 10% return with high risk may be worse than 7% with low risk.
Does ROI account for inflation?
Standard ROI doesn't include inflation. Real ROI = Nominal ROI - Inflation Rate. With 8% nominal return and 3% inflation, real return is about 5%. Over long periods, this matters significantly. $100,000 with 8% nominal return for 30 years = $1M nominally, but only ~$400,000 in today's dollars.