ROI Calculator
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$
$
0.00%
Total Return on Investment
Total Profit$0
Annualized Return (CAGR)0.00%
vs. Savings Account$0
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How to Use the Investment ROI Calculator
First, enter your initial investment — the amount you originally put into the investment. Next, enter the final value — what the investment is worth now. Then input your holding period in years.
For dollar-cost averaging (DCA) scenarios, add a monthly contribution amount. The savings account rate lets you compare what your money would have earned in a standard savings account.
ROI and CAGR Formulas
ROI = [(Final Value − Total Invested) / Total Invested] × 100
CAGR = (Final Value / Total Invested)^(1 / Years) − 1
Where: Total Invested = Initial Investment + (Monthly Contribution × 12 × Years). CAGR stands for Compound Annual Growth Rate.
Frequently Asked Questions
A good ROI depends on the investment type and risk level. The S&P 500 historically averages 7-10% annualized return. Real estate typically yields 8-12%. Higher-risk investments should offer higher potential returns.
ROI is the total percentage gain over the entire holding period. CAGR is the average annual return, accounting for compounding. CAGR is more useful for comparing investments of different lengths.
Monthly contributions increase your total invested capital, which can boost your total profit but may lower your ROI percentage if later contributions haven't had time to grow. This is normal in DCA strategies.
Dollar-cost averaging is an investment strategy where you invest a fixed amount at regular intervals (e.g., monthly) regardless of market conditions. This reduces the impact of market volatility.