ROI & Profit Margin Calculator
Calculate Return on Investment (ROI), annualized return, profit margin, and break-even revenue.
Return on Investment (ROI) & Annualized Growth Rate Mathematics
ROI calculator computes total return on investment percentage and annualized (compound annual growth rate) return from your initial investment, final value, and holding period.
Total ROI measures overall percentage gain or loss over the full holding period; annualized ROI (CAGR) normalizes that return to a consistent yearly rate for comparing investments held over different time periods.
- 1Enter your initial investment amount and the investment's final (current or exit) value.
- 2Enter how many years you held the investment.
- 3View total net profit, total ROI percentage, and annualized ROI (CAGR) for comparing against other investments.
An investor put $5,000 into an asset that is now worth $7,800, after 3 years.
Frequently Asked Questions (FAQ)
Subtract your initial investment from the final value to get net profit, then divide by the initial investment and multiply by 100 — a $5,000 investment growing to $7,800 has a 56% total ROI.
Total ROI is the overall percentage gain across the entire holding period; annualized ROI (also called CAGR) converts that into an equivalent constant yearly growth rate, which is essential for comparing investments held for different lengths of time.
It depends heavily on the asset class and risk level — publicly traded stock market indices have historically averaged roughly 7-10% annualized over long periods, so an annualized ROI meaningfully above that reflects outperformance (and often higher risk).
No, this is a gross calculation based only on initial and final value — trading fees, management fees, and capital gains taxes would reduce your actual net return.
Top Similar Tools (Finance)
Explore more tools in Finance (5+ more calculators available)
Browse our complete directory with category filters, formulas, and verified engines.