Work out the return on an investment, how fast it grew each year, and how long it takes to pay back, and compare up to three investments side by side.
Basic ROI Calculator
Calculate simple return on investment percentage.
Time-Based ROI Calculator
Calculate annualized ROI with time period consideration.
Multi-Investment ROI Comparison
Compare multiple investments side by side.
Investment A
Investment B
Investment C
What this ROI calculator does
- Basic: initial investment, final value and any additional costs to the net gain and ROI.
- Intermediate: adds the time period and annual cash flows to give total ROI, annual ROI, compound annual growth rate (CAGR), payback period and a year-by-year table.
- Advanced: compares three investments by ROI, annual ROI and a simple risk-adjusted return, and ranks them.
The formulas
| Measure | Formula |
|---|---|
| ROI | (final value − total investment) ÷ total investment × 100, where total investment = initial investment + additional costs |
| Annual ROI | ROI ÷ years |
| CAGR | (final value ÷ initial investment)1 ÷ years − 1 |
| Payback period | total investment ÷ annual cash flow |
Worked example: investing $1,000 plus $100 of costs and ending with $1,500 gives a net gain of $400 and an ROI of 36.4%. In the Intermediate tab, $10,000 growing to $15,000 over 3 years with $500 of costs and $200 a year of cash flow gives a total ROI of 48.6%, an annual ROI of 16.2% and a CAGR of 14.5% based on the initial and final values.
Things to keep in mind
ROI does not account for how long the money was invested, so use annual ROI or CAGR to compare investments of different lengths. Taxes and inflation are not included. The risk-adjusted return in the Advanced tab simply multiplies annual ROI by 1.0, 0.85 or 0.7 for low, medium or high risk. It is an illustration, not a measure of real risk. Past returns do not predict future results. These results are estimates for general information only and are not financial, tax or legal advice. Check important figures with a qualified professional.
Frequently asked questions
What is a good ROI?
It depends on the type of investment, the time it takes and the risk. Compare it with alternatives and over the same period.
What is CAGR?
The constant yearly growth rate that would take the initial value to the final value over the number of years you entered.
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