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ROI Calculator

Calculate your Return on Investment and annualized rate of return.

$
$
yr

Return on Investment

Total ROI

60.0%

Annualized Return

9.9%

Total Gain

$6,000

Inflation-adjusted (real) return

%

Real future value (today's $)

$13,802

Real gain (today's $)

$3,802

Real annualized return

6.7%

Your $16,000 in 5 yr will have the buying power of $13,802 today. Nominal annualized 9.9% → real 6.7%.

How does it compare to benchmarks?

Same $10,000 over 5 years, growing at each benchmark rate.

BenchmarkRateWould be worthYour result
S&P 50010.0%$16,105-$105
US Treasuries (10yr)4.5%$12,462+$3,538
Inflation (CPI)3.0%$11,593+$4,407

S&P 500, Treasuries, and inflation are long-run historical averages — not predictions or guarantees.

Add annual contributions
$

Total contributed over 5 years

$10,000

Principal $10,000 + 5 × $0 contributions. Note: ROI above is computed on the initial investment only; contributions change your cost basis.

Researched by CentCalc Financial Editorial TeamData: Standard ROI formula (gain − cost) / cost

How This Is Calculated

This calculator computes two key investment metrics: total ROI andannualized return (CAGR).

Total ROI = (Final Value − Initial Investment) ÷ Initial Investment. This shows the overall percentage gain or loss, but does not account for how long the investment was held.

Annualized return (CAGR) = (Final Value ÷ Initial Investment)(1/Years) − 1. This is the compound annual growth rate — the constant yearly rate that would grow your initial investment to the final value over the holding period. It enables apples-to-apples comparison between investments of different durations.

Example: $10,000 invested for 3 years, growing to $15,000. Total ROI = 50%. Annualized return = (15,000/10,000)(1/3) − 1 = 14.5% per year.

Nominal returns only. Does not account for inflation, taxes, fees, or dividends. Past performance does not guarantee future results.

Frequently Asked Questions

What is ROI (Return on Investment)?
ROI measures investment profitability as a percentage: (Final Value − Initial Investment) ÷ Initial Investment × 100. A $10,000 investment growing to $15,000 is a 50% ROI.
What is the difference between total ROI and annualized return?
Total ROI measures overall gain regardless of time. Annualized return normalizes to a yearly rate. A 50% total ROI over 1 year is excellent, but 50% over 10 years is only ~4.1% annualized.
How is annualized return calculated?
Annualized return uses CAGR: (Final Value / Initial Investment)^(1/Years) − 1. This geometric mean accounts for compounding and enables comparison across different time periods.
What is a good ROI for an investment?
Historically, the S&P 500 averages ~10% annually (7% after inflation). Real estate targets 8–12%. High-yield savings offer 4–5%. Higher expected returns come with higher risk.
Does this calculator account for inflation or fees?
No. This shows nominal ROI. It does not adjust for inflation, taxes, or fees. For real returns, subtract the inflation rate from your annualized return.

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Nominal returns only. Does not account for inflation, taxes, fees, or dividends. Past performance does not guarantee future results. Consult a financial advisor.