Investment ROI Calculator
Calculate return on investment and annualized returns for your investments
Investment Details
Optional: Total additional investments
Total Return
$15,000
50% gain
Total Gain
$5,000
Profit earned
ROI
50%
Return on Investment
Annualized Return
8.45%
Average annual growth
Investment Growth Over Time
Year-by-Year Breakdown
| Year | Value | Total Gain | Cumulative Return |
|---|---|---|---|
| 1 | $10,844.72 | $844.72 | 8.45% |
| 2 | $11,760.79 | $1,760.79 | 17.61% |
| 3 | $12,754.25 | $2,754.25 | 27.54% |
| 4 | $13,831.62 | $3,831.62 | 38.32% |
| 5 | $15,000 | $5,000 | 50.00% |
Understanding ROI
ROI (Return on Investment) measures the profitability of an investment relative to its cost. It's expressed as a percentage and helps you compare different investment opportunities.
Formula: ROI = (Final Value - Total Investment) / Total Investment × 100
Annualized Return (CAGR): The average annual growth rate over the investment period, accounting for compounding. This is useful for comparing investments with different time horizons.
Benchmarks:
- S&P 500 historical average: ~10% annually
- Bonds: 3-5% annually
- Real estate: 8-12% annually
- High-yield savings: 1-4% annually
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