Does this account for cash flows during the period?

No. This simple version assumes a single initial investment and a single final value. For ongoing contributions, use the compound interest calculator.

Should I compare this to inflation?

Yes. Subtracting inflation gives the real return — the actual increase in purchasing power. A 7% nominal return with 3% inflation is about a 4% real return.

Should I compare this to inflation?

Yes. Subtracting inflation gives the real return — the actual increase in purchasing power. An 8% nominal return with 3% inflation is about a 5% real return, which is the figure that matters for long-run wealth.

Does this account for dividends?

Only if the final value you enter already includes reinvested dividends. If dividends were paid out and not reinvested, the calculator understates your true total return.

Finance Calculators

Return on Investment (ROI) Calculator

Return on investment measures how much an investment grew as a percentage of what you put in. The total ROI shows the overall gain, while the annualized return normalises it to a yearly rate so you can compare investments held for different lengths of time.

Enter the amount you invested, the final value, and how many years you held it. The calculator returns the total ROI and the compound annual growth rate (CAGR).

It is best for comparing a single lump-sum investment against another, or against a benchmark, over a known holding period — not for accounts with ongoing deposits.

Initial investment

Final value

Holding periodyrs

Currency

Enter your values to see the result.

How this is calculated

Return on investment (ROI) measures how much an investment grew as a percentage of what you put in. This calculator reports two figures. Total ROI is the overall percentage gain: (final value − initial investment) ÷ initial investment × 100. Annualised return, or compound annual growth rate (CAGR), is the equivalent steady yearly rate that would produce the same final value from the same initial amount: (final ÷ initial)^(1 ÷ years) − 1, expressed as a percentage.

CAGR matters because it normalises performance to a yearly rate, so you can compare investments held for different lengths of time on equal terms. A 60% gain over three years is about a 17% annualised return, not 20%, because the growth compounds.

The model assumes a single initial investment and a single final value, with no money added or withdrawn in between. It does not account for dividends (unless they are already in the final value), taxes, fund fees, inflation, or the timing of cash flows. For investments with ongoing contributions, use the compound interest calculator; for inflation-adjusted returns, subtract inflation from the result.

Worked example

You invested $10,000, it is now worth $18,000 after 5 years.

1Total gain = 18,000 − 10,000 = $8,000.
2Total ROI = 8,000 ÷ 10,000 × 100 = 80%.
3CAGR = (18,000 ÷ 10,000)^(1 ÷ 5) − 1 = 1.8^0.2 − 1 ≈ 12.5% per year.

Frequently asked questions

What is the difference between ROI and annualized return?: ROI is the total percentage gain over the whole period. Annualized return (CAGR) is the equivalent steady yearly rate that would produce the same final value, making different holding periods comparable.
Does this account for cash flows during the period?: No. This simple version assumes a single initial investment and a single final value. For ongoing contributions, use the compound interest calculator.
Should I compare this to inflation?: Yes. Subtracting inflation gives the real return — the actual increase in purchasing power. A 7% nominal return with 3% inflation is about a 4% real return.
Should I compare this to inflation?: Yes. Subtracting inflation gives the real return — the actual increase in purchasing power. An 8% nominal return with 3% inflation is about a 5% real return, which is the figure that matters for long-run wealth.
Does this account for dividends?: Only if the final value you enter already includes reinvested dividends. If dividends were paid out and not reinvested, the calculator understates your true total return.

Related calculators

Method: total ROI and compound annual growth rate (CAGR). No external data source. Last updated: September 2026.

These results are indicative estimates for planning only and do not constitute financial advice. Actual loan terms, tax rules, investment returns and product conditions vary by country, provider and your personal circumstances. Always confirm figures with your bank, tax authority or a qualified financial adviser before making decisions.