ROI Calculator
Calculate your return on investment and annualized ROI from an initial and final value.
Net profit
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ROI
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Annualized ROI (CAGR)
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How ROI is calculated
Return on investment is (Final Value − Initial Investment) ÷ Initial Investment ×
100. It's a simple, universal way to compare very different investments — a
marketing campaign, a piece of equipment, a stock position — on the same scale,
though it doesn't account for how long the money was tied up.
That's what the annualized figure (compound annual growth rate, or CAGR) fixes: it spreads the total return evenly across each year of the holding period, so a 40% return over 4 years and a 40% return over 1 year — very different outcomes — show up as different annualized rates instead of looking identical.