Investment Return Calculator
Enter the initial investment value, current value or sale price and investment time. The calculator shows profit in euros, total return percentage and annual return.
Profit / loss
Total return (ROI)
Annual return (CAGR)
What is ROI?
ROI (Return on Investment) or return on invested capital tells how much the investment has yielded relative to the original capital. It is one of the most used key figures for comparing the profitability of investments and business.
Formulas
Total return: ROI = (End value − Initial investment) / Initial investment × 100 %
Annualized annual return (CAGR): CAGR = (End value / Initial investment)^(1/years) − 1
CAGR is useful for comparing investments of different lengths, as it converts the total return to an annual return percentage.
Examples of returns
| Investment | Time | ROI | CAGR |
|---|---|---|---|
| 10 000 € → 15 000 € | 5 y | 50 % | 8,4 %/y |
| 10 000 € → 20 000 € | 10 y | 100 % | 7,2 %/y |
| 10 000 € → 12 000 € | 2 y | 20 % | 9,5 %/y |
| 50 000 € → 45 000 € | 3 y | −10 % | −3,4 %/y |
When to use ROI and when CAGR?
- ROI is suitable for assessing the total return of a single investment
- CAGR is suitable for comparing investments of different lengths, as it takes into account the effect of time
For example, 100% return in 10 years sounds good, but CAGR is only 7.2%/y. On the other hand, 20% return in 2 years corresponds to 9.5% annual return.
Other calculators
- Compound Interest Calculator — calculate investment growth into the future
- Compound Interest Calculator (with additional investments) — takes into account monthly additional investments
- Loan Repayment Calculator — calculate loan monthly payment and interest costs