Total ROI (%) · Annualized CAGR · Net Profit · Investment Multiple

ROI Calculator

Measure the true performance of your investments, business ventures, real estate, and portfolio assets.

Presets:

Initial Investment ($)

Final Value / Return ($)

Fees / Costs ($)

Investment Duration

Yrs

Mos

Total ROI

+115.00%

Total cumulative gain

Annualized ROI (CAGR)

+11.56%

Compound Annual Growth Rate

Net Profit

+$11,500.00

After initial outlay & costs

Investment Multiple

2.15×

Final Return / Total Outlay

Compounded Milestone Trajectory (11.6% / yr)

Year 0 (Start)

$10,000.00

Year 1

$11,155.56

Year 2

$12,444.64

Year 3

$13,882.69

Year 4

$15,486.91

Year 5

$17,276.51

Year 6

$19,272.91

Year 7

$21,500.00

Investment Metrics: Simple ROI vs. Annualized CAGR

Total ROI vs. Annualized CAGR

Total ROI shows overall cumulative gain without taking time into account: a 100% gain over 1 year is extraordinary, while a 100% gain over 25 years is mediocre (~2.8% annualized).

Compound Annual Growth Rate (CAGR) normalizes returns on a per-year basis, allowing apple-to-apple comparisons across disparate timeframes.

The CAGR Formula

CAGR measures the constant smoothed annual rate of return:

CAGR = (Ending / Beginning)^(1 / t) - 1

Where t is the duration in years. This accounts for annual compounding rather than simple linear division.

Accounting for Holding Costs & Fees

Many investors mistakenly calculate ROI using gross price appreciation alone, ignoring management fees, taxes, and maintenance expenses.

True net ROI divides by total invested capital (Initial Principal + Incremental Costs) to compute honest cash-on-cash yield.