ROI Calculator
Calculate return on investment, profit, multiple and annualised CAGR for any investment.
TL;DR — ROI Calculator: An ROI (Return on Investment) calculator measures the profitability of an investment relative to its cost. It expresses gain (or loss) as a percentage of the initial amount, making it possible to compare investments of different sizes. Cal44 also computes the annualised CAGR so investments held for different durations can be compared on equal footing.
What is the ROI Calculator?
An ROI (Return on Investment) calculator measures the profitability of an investment relative to its cost. It expresses gain (or loss) as a percentage of the initial amount, making it possible to compare investments of different sizes. Cal44 also computes the annualised CAGR so investments held for different durations can be compared on equal footing.
How to use the ROI Calculator
- Enter the initial investment (cost).
- Enter the final value (proceeds).
- Enter the holding period in years.
- Read the total ROI percentage, net profit, multiple (final ÷ initial) and annualised CAGR.
Formula
ROI % = ((Final − Initial) ÷ Initial) × 100 CAGR = (Final ÷ Initial)^(1/years) − 1
Final = final value · Initial = original investment · years = holding period
Worked example
Invested $10,000, sold for $18,000 after 5 years. ROI = (18,000 − 10,000) ÷ 10,000 = 80%. CAGR = (1.8)^(1/5) − 1 ≈ 12.5% per year.
Frequently asked questions
What is a good ROI?
It depends on the asset class and risk. Long-term US equities have averaged about 10% annually before inflation. A "good" ROI is one that exceeds risk-adjusted alternatives like index funds and bonds.
What is CAGR?
Compound Annual Growth Rate — the smoothed annual rate that turns the initial value into the final value over the holding period. It allows fair comparison between investments held for different durations.
Does ROI account for inflation?
No — Cal44's ROI is nominal. To get real ROI, subtract the inflation rate over the holding period.
How is ROI different from profit?
Profit is the absolute gain in currency. ROI expresses that gain as a percentage of the original investment, so different-sized investments can be compared.
Can ROI be negative?
Yes. If the final value is lower than the initial, ROI is negative — that's the loss percentage.