ROI Calculator
Enter your investment cost and final value to instantly calculate ROI, annualized CAGR, and see how your returns compare to S&P 500, bonds, and savings benchmarks.
Inputs
Holding Period (optional)
Total ROI
50.00%
Total Profit
$5,000
Annualized (CAGR)
14.47%
over 3.0 yrs
vs. Benchmarks (3.0 yr)
Smart Insights
A 50.0% total return (14.5% annualized) represents solid investment performance.
Your 14.5% CAGR beats the S&P 500's historical 10% average — strong outperformance.
ROI measures raw return on capital. For time-adjusted comparison across investments, use CAGR — it accounts for holding period length.
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ROI vs CAGR — Which Should You Use?
Use ROI when you want a simple snapshot of total gain or loss. Use CAGR when comparing investments held for different time periods — it normalizes returns to a per-year basis, making apples-to-apples comparison possible. For example, a 100% ROI over 2 years (CAGR ~41%) is very different from a 100% ROI over 10 years (CAGR ~7.2%).
Frequently Asked Questions
What is ROI (Return on Investment)?
ROI measures the gain or loss on an investment relative to its cost. The formula is: ROI = (Final Value − Initial Investment) / Initial Investment × 100. A 50% ROI means you earned $0.50 for every $1 invested.
What is CAGR and how is it different from ROI?
CAGR (Compound Annual Growth Rate) is the annualized rate of return over a multi-year period. It accounts for compounding and allows fair comparison between investments held for different lengths of time. ROI is the total return regardless of time; CAGR is the per-year equivalent.
What is a good ROI for stocks?
The S&P 500 has historically returned about 10% per year before inflation. A CAGR above 10% is considered strong outperformance. However, individual stocks can vary wildly — a good ROI depends heavily on the risk taken and the holding period.
How do I calculate ROI on real estate?
For real estate, your initial investment is the purchase price (or down payment for leveraged returns), and your final value is the sale price plus any rental income received, minus maintenance costs and taxes. This calculator handles the pure price appreciation component.
What is the breakeven point?
The breakeven point is when your final value equals your initial investment — an ROI of exactly 0%. At breakeven, you have recovered your capital but made no profit. The benchmark comparison in this calculator shows how passive investments would have performed over the same period.