Annualized growth (CAGR)
Turn a start and end value into a smoothed annual growth rate.
Saving & investingSaving & investing
Return on investment calculator
Did that idea earn its oats?
Your numbers
Calculate the total return on an investment, including additional costs and income received.
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THE MATH, WITHOUT THE MYSTERY
What’s actually happening here?
Return on investment compares the gain with the money committed. The denominator here includes both your initial investment and extra costs.
This is a total-period return, not an annualized return. A 20% return over one year is a different pace from 20% over ten years. This tool also does not model the timing of interim cash flows.
THE FORMULA
ROI = (Final value + Income − Initial cost − Extra costs) / (Initial cost + Extra costs) × 100
A small example
Spend 1,000 plus 100 in costs, then receive 1,250 in sale proceeds and 50 in income. Profit is 200; ROI is 200 ÷ 1,100 = 18.18%.
GOOD QUESTIONS
A few things worth knowing.
Is a positive ROI always a good investment?
Not by itself. Time, risk, taxes, inflation, and the return on alternatives all matter.
How do I compare different time periods?
For a start and end value with no intermediate cash flows, CAGR gives an annualized comparison. Multiple dated cash flows call for a money-weighted calculation such as XIRR, which this tool does not provide.