ROI Calculator
Calculate your return on investment (ROI) and annualized returns (CAGR). Compare your performance to market benchmarks and explore what-if scenarios for different return rates.
Investment Details
Additional Contributions (Optional)
Return on Investment
Total gain: $5,000
Return Breakdown
| Simple ROI | 50.00% |
| Annualized Return (CAGR) | 14.47% |
| Average Annual Return | 16.67% |
| Average Monthly Return | 1.389% |
Benchmark Comparison
| Benchmark | Annual Rate | Would Be Worth | vs Your Return |
|---|---|---|---|
| S&P 500 (Historical) | 10% | $13,310 | +$1,690 |
| Bonds (Historical) | 5% | $11,576 | +$3,424 |
| Savings Account | 4% | $11,249 | +$3,751 |
| Inflation | 3% | $10,927 | +$4,073 |
What If Scenarios
If your $10,000 earned different rates over 3.0 years:
| Annual Rate | Final Value | Total Gain | ROI |
|---|---|---|---|
| 5% | $11,576 | $1,576 | 15.8% |
| 7% | $12,250 | $2,250 | 22.5% |
| 10% | $13,310 | $3,310 | 33.1% |
| 12% | $14,049 | $4,049 | 40.5% |
| 15% | $15,209 | $5,209 | 52.1% |
Investment Summary
Understanding ROI
Simple ROI vs CAGR
Simple ROI shows total return. CAGR (Compound Annual Growth Rate) shows the smoothed annual rate. CAGR is better for comparing investments of different durations.
Rule of 72
Divide 72 by your annual return to estimate doubling time. At 8% return, money doubles in ~9 years (72÷8=9). At 12%, it doubles in ~6 years.
Real vs Nominal Returns
Nominal return is the raw percentage. Real return subtracts inflation (~3%). A 10% nominal return is really ~7% in purchasing power.
Frequently Asked Questions
How do I calculate ROI?
ROI = (Final Value - Initial Investment) / Initial Investment × 100
Example:
- Invested: $10,000
- Final value: $15,000
- ROI: ($15,000 - $10,000) / $10,000 × 100 = 50%
What is CAGR?
CAGR (Compound Annual Growth Rate) is the smoothed annual rate of return that would produce the same result.
CAGR = (Final Value / Initial Value)^(1/Years) - 1
CAGR is better than simple ROI for comparing investments of different durations because it accounts for compounding.
What is a good ROI?
| Investment Type | Typical Annual Return |
|---|---|
| S&P 500 (stocks) | ~10% |
| Real estate | ~8-12% |
| Bonds | ~4-6% |
| Savings account | ~4-5% |
| Inflation | ~3% |
Any return above inflation maintains purchasing power.
What is the Rule of 72?
The Rule of 72 estimates how long it takes to double your money:
Years to Double = 72 ÷ Annual Return Rate
- At 6%: 72 ÷ 6 = 12 years to double
- At 8%: 72 ÷ 8 = 9 years to double
- At 10%: 72 ÷ 10 = 7.2 years to double
- At 12%: 72 ÷ 12 = 6 years to double