ROI Calculator
Calculate your return on investment. Enter your initial cost and final value to see your total ROI percentage and dollar gain or loss. Optionally add a time period to see your annualized return (CAGR) for easy comparison across investments.
Educational purposes only.
This calculator provides simple return calculations for educational purposes. Actual investment returns may differ due to fees, taxes, dividends, and other factors. This is not financial advice.
Educational purposes only. These calculators illustrate concepts and do not constitute investment advice. Read our disclaimer
StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.How It Works
Enter your initial investment
The total amount you originally invested or paid.
Enter the final value
The current or ending value of your investment.
Add time period (optional)
Enter the number of years to calculate your annualized return (CAGR).
Review your results
See your total ROI percentage, dollar gain or loss, and annualized return if a time period was provided.
Frequently Asked Questions
ROI (Return on Investment) measures the gain or loss on an investment relative to the amount invested. It is expressed as a percentage: ROI = ((Final Value - Initial Cost) / Initial Cost) × 100. A positive ROI means your investment gained value; a negative ROI means it lost value.
Annualized ROI (also called CAGR — Compound Annual Growth Rate) converts your total return into an equivalent annual rate. This makes it easy to compare investments held for different time periods. For example, a 50% total return over 5 years equals about 8.45% annualized.
ROI gives you the total percentage return over the entire holding period, regardless of how long that was. CAGR (Compound Annual Growth Rate) normalizes the return to a per-year basis. ROI is useful for a quick snapshot; CAGR is better for comparing investments held for different time periods.
This calculator shows nominal ROI — it does not adjust for inflation. To approximate a real (inflation-adjusted) return, subtract the annual inflation rate from your annualized ROI. For example, if your annualized ROI is 8% and inflation averages 3%, your real return is roughly 5%.
A "good" ROI depends on the investment type and risk. The S&P 500 has historically returned about 10% per year on average (before inflation). Real estate, bonds, and other assets have different typical ranges. Higher returns generally come with higher risk. Compare your ROI to a relevant benchmark for context.