ROI & CAGR calculator — return on investment
Compare an investment’s starting cost with its ending value to find the gain or loss. Add the holding period to express that change as a compounded yearly rate.
Runs in your browser — your input is not uploaded to ToolsNow.
Sets currency and number formatting only.
Optional. Added to your initial cost, so it affects both ROI and CAGR.
What you put in at the start.
What it is worth now, or at the end of the period.
This compares a starting cost with a final value. It does not account for deposits or withdrawals during the period. If you have those, use a calculation that includes their amounts and dates, such as XIRR.
How to use
- Pick a mode. ROI for the total return; CAGR when you also want the compounded yearly equivalent.
- Enter initial and final amounts in the same currency. Country sets currency and number formatting, rather than converting money between currencies.
- Add any separate upfront fees. They are included in starting cost for both calculations.
- For CAGR, add the number of years between the two amounts.
Example
With €10,000 at the start, €12,500 after 3 years, no fees and no intervening deposits or withdrawals, profit is €2,500, ROI is 25.00% and CAGR is about 7.72%. This example makes no tax or inflation adjustment.
Questions
What is the difference between ROI and CAGR?
ROI measures the gain or loss relative to the starting cost across the whole period. CAGR is the constant compounded yearly rate that would connect the two amounts. A 25% total return over three years is about 7.72% CAGR; it does not mean each actual year returned 7.72%.
Where do fees fit in?
The tool adds all entered fees to the initial amount, treating them as a cost at the start. For €10,000 initially, €250 in fees and €12,500 at the end, the cost is €10,250 and profit is €2,250, giving about 21.95% ROI. Avoid counting a fee twice if it is already included in an amount.
Can I use this for a portfolio I paid into over time?
It does not account for the timing of later deposits or withdrawals. For those cash flows, use a dated return calculation such as XIRR. This tool also makes no automatic adjustment for tax, inflation, income paid out during the period or exchange-rate changes.
Can it show a loss?
Yes, when the positive final amount is below the total starting cost. For example, €10,000 falling to €8,000 with no fees gives −20% ROI. A zero or negative final amount does not produce a result in the current form.
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