§ 01 / TOOL
$2,500 → $10,000 / 12y.
STATUS ACTIVEOUTPUTS 3LATENCY <1MS
> INPUT
MODE TOTAL + ANNUALIZED
// INITIAL
$
// FINAL
$
// YEARS HELD
yrs
TOTAL RETURN.
ROI
// RESULT
+300.00%%
// GAIN
$7,500
// ANNUALIZED (CAGR)
+12.25%
// MULTIPLIER
4.00×
// FORMULA
($10,000 − $2,500) ÷ $2,500 × 100 = +300.00%
An initial $2,500 that grew to $10,000 over 12 years is a +300.00%% total return — a $7,500 gain, or +12.25% annualized.
§ 02 / ABOUT
Two ways to measure return.
Return on investment has two flavors. Total ROI is the raw percent change: (final − initial) / initial. CAGR (compound annual growth rate) is the annualized equivalent — (final / initial)^(1/years) − 1. They tell very different stories over long horizons.
// WHY CAGR MATTERS
- $1,000 → $3,000 over 10 years — 200% total ROI, but only ~11.6% annualized.
- $1,000 → $3,000 over 3 years — same total ROI, but ~44% CAGR. Very different story.
- Compare investments of different lengths — CAGR is the only fair way.
// WHAT "GOOD" LOOKS LIKE
Long-run historical benchmarks: S&P 500 ~10% nominal / 7% real. Bonds 3–5%. Residential real estate 3–5% real appreciation plus yield. A 12%+ CAGR consistently is exceptional; single-year spikes don't count.
Related: Compound Interest, Cap Rate, Percentage.
§ 02 / FAQ
Questions. Answered.
How is ROI calculated?+
Return on investment = (final value − initial investment) ÷ initial investment × 100. So $10,000 that grew to $15,000 is (15000 − 10000) ÷ 10000 × 100 = 50% total return.
What is CAGR?+
Compound Annual Growth Rate. It’s the constant rate that would take you from initial to final over the period if you compounded annually. The formula is (final / initial)^(1/years) − 1. CAGR is how you compare investments held over different time periods fairly — a 50% return over 5 years is only 8.45% annualized, not the 10%/year you might guess.
ROI vs CAGR — which one should I use?+
Use total ROI for a single-period snapshot ("I made 50% on this trade"). Use CAGR when comparing investments or judging pace ("this grew at 8.45%/year"). Both appear in the results.
Does this account for dividends or fees?+
Only if you include them in the final value. Add reinvested dividends to the final; subtract any fees from the final before entering it. This is pure money-in vs money-out — it doesn’t model cash flows during the holding period.
Can I calculate a loss?+
Yes. Enter a final value lower than initial and you’ll get a negative return and negative CAGR. Supports any final ≥ 0.
Does the URL update so I can share?+
Yes. As you type, the URL updates to /roi/10000-15000-5 (initial-final-years). Copy the URL bar or use the SHARE button.
§ 04 / TOOLS
Related calculators.
§ 05 / READING