ROI & Annualised Return Calculator

Calculate return on investment and, if you enter the holding period, the annualised return (CAGR) so investments of different lengths compare fairly.

Runs on your device

Result

Results appear here as you type.

What it does

A 50% return over five years is very different from 50% in one year. Annualised return (compound annual growth rate) puts them on the same footing.

How to use it

  1. Enter the amount invested and the final value.
  2. Optionally enter the number of years.
  3. Read ROI and annualised return.

Example

The example fills in realistic values and runs the tool. Select Try an example above to see it.

When it helps

  • Evaluating marketing campaigns.
  • Comparing equipment purchases.
  • Reviewing past investments.

Questions

Formula?

ROI = (final − invested) ÷ invested. CAGR = (final ÷ invested)^(1/years) − 1.

Does this include inflation?

No. Subtract the inflation rate from the annualised return for a rough real return.

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