Investing
ROI Calculator
Return on investment tells you what an investment actually earned. Enter what you put in, what it's worth now, and how long you held it to see your total gain, your total return, and — most usefully — the annualized return that puts investments of different lengths on the same footing.
Total return (ROI)
50%
- Annualized return (CAGR)
- 8.45%
- Total gain
- $5,000
- Years held
- 5
The steady yearly rate that compounds to the same result.
How this calculator works
Total return = (final value − amount invested) ÷ amount invested. Annualized return (CAGR) = (final ÷ initial)^(1 ÷ years) − 1. All money is handled in exact cents.
This measures a lump-sum investment from one value to another. It doesn't adjust for inflation (subtract ~3%/yr for a real return), taxes, or fees, and it assumes no cash was added or withdrawn along the way.
Try an example
Frequently asked questions
How do you calculate ROI?
ROI = (final value − amount invested) ÷ amount invested. A $10,000 investment now worth $15,000 has a $5,000 gain and a 50% ROI. That's the total return over the whole holding period — not per year.
What is annualized return (CAGR) and why does it matter?
Compound annual growth rate is the single yearly rate that would grow your starting amount to its final value over the period. A 50% total return sounds great, but over 10 years it's only about 4.1% per year. CAGR lets you compare a 2-year win against a 10-year one fairly — always the number to judge investments by.
Does this ROI include dividends or extra contributions?
Only if you include them in the ending value. This tool compares a single amount in to a single amount out, so for a stock, use the current value including reinvested dividends. For an account you kept adding to, our Investment Growth calculator handles ongoing contributions.
Is a good ROI the same for every investment?
No — it depends on risk and time. The US stock market has returned roughly 10% per year (about 7% after inflation) over the long run, so that's a common benchmark. A higher return usually means higher risk; compare any deal's annualized return against a low-cost index fund before deciding it's a winner.
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.