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.
Formula shown below · Tested against worked examplesHow we verify
Total return (ROI): 50%
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.
Compare scenariosTry three values of one input
| Amount invested | |||
|---|---|---|---|
| Total return (ROI) | 66.67% | 50%−16.67% | 36.36%−30.3% |
| Annualized return (CAGR) | 10.76% | 8.45%−2.31% | 6.4%−4.36% |
| Total gain | $6,000 | $5,000−$1,000 | $4,000−$2,000 |
Every other input stays at the value you set above — currently $10,000 for amount invested. Differences are measured against the first column.
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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doesn't adjust for inflation (subtract ~3%/yr for a real return), taxes, or fees, and it assumes no cash was added or withdrawn along the way.
Formula
ROI = (Gain − Cost) ÷ Cost
CAGR = ((Gain ÷ Cost)^(1/t)) − 1- Gain
- Final value of the investment
- Cost
- Total amount invested
- t
- Holding period in years
ROI is a total, not an annual figure. Always read it alongside the annualised rate: 50% over ten years is 4.14% a year, which is a very different investment from 50% over one.
What this assumes
- Total return over the whole holding period rather than an annual figure — always read it with the years attached.
- Costs of acquiring and disposing are included only where entered.
- Taxes are excluded, and they differ sharply between short-term and long-term holdings.
What changes this number
- Holding period
- Turns a headline into a comparable number. 50% over ten years is 4.14% a year.
- All-in cost
- Fees, commissions and improvements belong in the denominator; leaving them out flatters the result.
- Comparison benchmark
- An ROI is only meaningful against the alternative — usually a low-cost index fund.
A worked example
Take the doubled in 7 years scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.
What you enter
- Amount invested
- $10,000
- Value today (or at sale)
- $20,000
- Years held
- 7 years
What it returns
- Total return (ROI)
- 100%
- Annualized return (CAGR)
- 10.41%
- Total gain
- $10,000
- Years held
- 7
Sources
This calculator uses no external data — the result follows entirely from the formula above and the values you enter, so there is nothing to cite beyond the arithmetic.
Calculator last reviewed August 8, 2026. How we verify
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.