Calculate return on investment (ROI) instantly. Enter your initial investment and final value to get ROI %, net profit, and annualized return.
ROI (Return on Investment) measures the gain or loss from an investment relative to its cost. Formula: ROI = (Final Value − Initial Investment) / Initial Investment × 100.
It depends on the asset class and risk. The S&P 500 averages ~10% annually. Real estate averages 8–12%. A 'good' ROI for a business investment is often considered 15–20%+ annually.
Compound Annual Growth Rate (CAGR) shows the consistent annual rate of return needed to grow an investment from its initial to its final value over a given period. It smooths out year-to-year volatility.
ROI is total return without considering time. CAGR is the annualized rate, accounting for compounding. CAGR is better for comparing investments held over different periods.
Pair an ROI calculator with a goal tracking habit — set a target ROI for each year and check it quarterly. Apps like Brite can help you build regular financial review habits.
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