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Investing & Retirement
Investment Return Calculator — ROI, Total Gain & Annualized Return (CAGR)
Turn what you put in and what it's worth now into a clear, year-over-year return
When you check a brokerage account or look back on a stock, fund, rental property or crypto position, the number that matters is your return — how much you actually made on the money you put in. This calculator answers two questions every American investor asks: "What's my total gain?" and "What did I really earn per year?"
Start with the simplest measure, return on investment (ROI), also called total return:
Total return % = (final value − initial investment) ÷ initial investment × 100.
Say you bought $10,000 of an index fund and it's now worth $16,500. Your gain is $6,500 and your total return is (16,500 − 10,000) ÷ 10,000 × 100 = 65%. That's the headline number, but on its own it hides one thing: time. A 65% return is excellent over 3 years and mediocre over 15.
That's why serious investors lean on the annualized return, the Compound Annual Growth Rate (CAGR). It's the steady yearly rate that would grow your starting amount into your ending amount over the years you held it:
CAGR = (final value ÷ initial investment)^(1 ÷ years) − 1.
Using the same numbers over 5 years: (16,500 ÷ 10,000)^(1/5) − 1 = 1.65^0.2 − 1 ≈ 10.5% per year. That single figure lets you compare a rental, a 401(k) fund, a CD and a stock on equal footing, because it strips out how long each one was held.
The common mistake is to take a multi-year total return and just divide by the number of years. Dividing 65% by 5 gives 13% — but the true annualized rate is only 10.5%, because returns compound. Simple division always overstates a multi-year return, and the gap grows the longer you hold. CAGR is the honest number.
A few things to keep straight. This tool measures the return of a past investment you already have results for — it is not a forecast. If you want to project future growth, use the Compound Interest Calculator instead. Also, basic ROI ignores taxes, fees, inflation and dividends paid out in cash, so treat the output as a clean, pre-tax estimate of price performance. If you reinvested dividends, use the total account value as your final number so they're counted.
Enter your initial cost, the current or sale value, and how many years you held it. The calculator shows your dollar gain, total return %, and annualized CAGR, with the full math laid out so you can see exactly where each number comes from.
📖 See also: How to Calculate Your Net Worth
Calculator
Fill in the fields and click "Calculate" for instant results.
📰 Formula
• Total gain ($) = final value − initial investment • Total return % = (final value − initial investment) / initial investment × 100 • Annualized return (CAGR) = (final value / initial investment)^(1 / years) − 1 • With extra contributions: total invested = initial + contributions, then apply the formulas to that base
📰 Formula
• Total gain ($) = final value − initial investment • Total return % = (final value − initial investment) / initial investment × 100 • Annualized return (CAGR) = (final value / initial investment)^(1 / years) − 1 • With extra contributions: total invested = initial + contributions, then apply the formulas to that base
🧪 Worked examples
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Example 2
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Example 3
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Example 4
⚠️ Common mistakes
- Dividing the total return by the number of years instead of using CAGR (this overstates the yearly rate).
- Forgetting that basic ROI ignores taxes, fees, inflation and cash dividends — it's a pre-tax estimate.
- Using this to forecast the future; it measures a past result, not projected growth.
- Entering zero or a negative initial investment, which makes the percentage and CAGR undefined.
💡 Tips
- To compare investments held for different periods, always look at the annualized return (CAGR), not the total return.
- If you reinvested dividends, use your full current account value as the final number so they're counted.
- For a true picture, subtract fees and estimate taxes separately — ROI alone is a gross, pre-tax figure.
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❓ Frequently asked questions
What is the difference between ROI and annualized return?
ROI (total return) is the overall percentage gain over the whole holding period. Annualized return, or CAGR, is the equivalent steady yearly rate. A 65% total return over 5 years is about a 10.5% annualized return because returns compound each year.
How do I calculate the return on my investment?
Subtract what you put in from what it's worth now, divide by what you put in, then multiply by 100. Example: ($16,500 − $10,000) ÷ $10,000 × 100 = 65% total return.
What is CAGR and how is it calculated?
CAGR is the Compound Annual Growth Rate — the steady yearly rate that turns your starting amount into your ending amount. Formula: (final ÷ initial)^(1 ÷ years) − 1. For $10,000 to $16,500 over 5 years it's about 10.5% per year.
Can I just divide my total return by the number of years?
No. Simple division ignores compounding and overstates the rate. 65% over 5 years is not 13% per year — the true annualized return is 10.5%. Always use CAGR for multi-year results.
Does this calculator account for taxes, fees and inflation?
No. It gives a gross, pre-tax estimate of price performance. Capital gains taxes, brokerage fees, expense ratios and inflation all reduce your real, take-home return, so subtract those separately for a complete picture.
How is this different from a compound interest calculator?
This tool measures a past investment you already know the result of — it tells you what you earned. A compound interest calculator projects future growth from an assumed rate. Use this one to review performance, the other one to plan ahead.
What is a good annual return on investment?
It depends on risk and time period, but historically the S&P 500 has averaged roughly 10% per year before inflation (about 7% after inflation). CDs and bonds typically return less, while individual stocks and crypto can swing far higher or lower. Compare against a relevant benchmark, not a fixed target. This is general information, not investment advice.
How do I handle dividends or interest I received?
If dividends were reinvested, your final account value already includes them — just use that total. If you took dividends as cash, add the total cash received to your final value before calculating, so your return reflects everything the investment paid you.
What if my investment lost money?
The math still works. Enter a final value below your cost and you'll get a negative total return and a negative CAGR. For example, $8,000 falling to $6,000 over 2 years is a −25% total return and about a −13.4% annualized loss.