What is the difference between ROI and CAGR?

ROI (Return on Investment) is the total percentage return over the entire investment period: (Final Value - Investment) / Investment x 100. CAGR (Compound Annual Growth Rate) is the annualized rate of return that accounts for compounding over multiple years. For a single-year investment, ROI and CAGR are the same; for multi-year periods, CAGR smooths the return.

How is annualized ROI calculated?

Annualized ROI uses the compound growth formula: [(Final Value / Initial Investment)^(1/years) - 1] x 100. This shows the equivalent yearly return rate. For example, if $10,000 grows to $16,105 over 5 years, the total ROI is 61.05% but the annualized ROI (CAGR) is 10%.

ROI Calculator

Calculate your return on investment (ROI), annualized ROI, CAGR, and net gain with a visual breakdown of investment growth.

Initial InvestmentFinal ValueTime Period (years)Currency

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How to use ROI Calculator

Enter your initial investment amount.
Enter the final value (current worth) of your investment.
Enter the time period in years (supports decimal values for months).
Select your currency.
Click Calculate to see ROI, annualized ROI, CAGR, and the visual chart.

What is ROI Calculator?

The ROI Calculator provides a complete investment return analysis. Enter your initial investment amount, the final value (or current worth), and the time period in years. The tool calculates: ROI percentage (total return relative to investment), annualized ROI (compounded annual growth rate or CAGR), and net gain. A visual bar chart compares your original investment against gains and final value, while the detailed section shows each calculation step. Useful for evaluating stocks, real estate, business investments, or any asset where you know entry and exit values.

FAQ

What is the difference between ROI and CAGR?: ROI (Return on Investment) is the total percentage return over the entire investment period: (Final Value - Investment) / Investment x 100. CAGR (Compound Annual Growth Rate) is the annualized rate of return that accounts for compounding over multiple years. For a single-year investment, ROI and CAGR are the same; for multi-year periods, CAGR smooths the return.
How is annualized ROI calculated?: Annualized ROI uses the compound growth formula: [(Final Value / Initial Investment)^(1/years) - 1] x 100. This shows the equivalent yearly return rate. For example, if $10,000 grows to $16,105 over 5 years, the total ROI is 61.05% but the annualized ROI (CAGR) is 10%.

ROI Calculator

How to use ROI Calculator

What is ROI Calculator?

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