Calculate ROI, CAGR (annualized return), and net profit or loss for any investment. Compare investment returns — stocks, real estate, business — with this free ROI calculator.
ROI, annualized return & profit/loss
ROI (Return on Investment) measures total profit as a percentage of the original investment. It's a simple, universal metric: invest $10,000, end with $15,000, and your ROI is 50%. But ROI alone doesn't account for time — a 50% return in 2 years is very different from a 50% return in 10 years. That's where CAGR (Compound Annual Growth Rate) becomes essential. CAGR answers "what consistent annual return would have produced this result?" and puts all investments on an equal, time-adjusted footing. The S&P 500 has delivered a CAGR of approximately 10% annually from 1957 to 2024 — roughly 7% after inflation — making it the benchmark US investors compare almost everything else against.
For business owners, ROI analysis extends beyond stock portfolios to capital expenditures, marketing campaigns, and expansion projects. A $50,000 equipment purchase that generates $70,000 in net new revenue over 3 years has a 40% ROI and a CAGR of about 11.9% — exceeding the S&P 500 average and potentially justifying the capital allocation over market investment. Real estate investments add another layer because ROI should account for rental income, appreciation, mortgage paydown, and tax benefits together. This calculator handles the core calculation — you supply the initial investment, final value, and time period.
ROI = (Final Value − Initial Investment) / Initial Investment × 100. A 50% ROI means you earned 50 cents for every dollar invested, regardless of how long it took — which is why CAGR is needed for time comparisons.
CAGR = (Final/Initial)^(1/years) − 1. The S&P 500's CAGR is approximately 10% nominal / 7% inflation-adjusted from 1957–2024. Use CAGR to compare investments held for different time periods on an equal basis.
S&P 500: ~10% CAGR historically. US real estate: 4%–8%. High-yield savings / CDs: 4%–5% in 2025. Long-term bonds: 3%–5%. A "good" ROI always depends on risk taken and the time horizon of the investment.
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