ROI & CAGR Calculator
Total return on investment, annualised CAGR between two dates, real return after inflation, doubling time and a benchmark comparison — including fees paid and income received along the way.
| Net profit | — |
|---|---|
| Total cost basis | — |
| Holding period | — |
| Annualised return (CAGR) | — |
| Simple annual return | — |
| Real (inflation-adjusted) CAGR | — |
| Against the benchmark | — |
| Doubling time at this CAGR | — |
In short
ROI = (total returned + income − total cost) ÷ total cost; CAGR = (end value ÷ start)^(1 ÷ years) − 1. 10,000 invested with 1,200 of costs that returns 16,500 plus 900 of dividends after 5 years is a 55.4% ROI and a 9.2% CAGR — about 5% a year in real terms after 4% inflation.
Who this is for: Investors, landlords and business owners annualising a return to compare it with alternatives.
ROI vs CAGR
| Measure | Formula | Use it for |
|---|---|---|
| ROI | (gain − cost) ÷ cost | One-off projects, a single purchase and sale |
| Simple annual return | ROI ÷ years | Quick estimate only |
| CAGR | (end ÷ start)^(1 ÷ years) − 1 | Comparing investments of different lengths |
| Real return | (1 + CAGR) ÷ (1 + inflation) − 1 | What the gain actually buys |
- A 65% ROI sounds good until you learn it took 12 years — that is a 4.3% CAGR, below a savings account in some years. Always annualise before comparing.
- Include every cost (fees, renovation, upkeep, taxes paid) and every income (rent, dividends) — ROI on price alone flatters property and understates dividend stocks.
- Works for shares, property, a business purchase, marketing spend, equipment, or a course — anything with a cost and a return.
Assumptions
- Cost basis = invested + extra costs; total back = returned + income; ROI = (back − cost) ÷ cost.
- CAGR = (back ÷ cost)^(1 ÷ years) − 1 with years from the two dates; real return = (1 + CAGR) ÷ (1 + inflation) − 1.
- No weighting of interim cash-flow dates (use XIRR for that).
Worked example
Cost basis 11,200; total back 17,400; net profit 6,200 → ROI 55.4% over 5.0 years. CAGR 9.2% a year (simple return would say 11.1%); real return after 4% inflation about 5.0%. It beat an 8% benchmark by 1.2 points a year — 11,200 at 8% would have become 16,456. Doubling time at 9.2%: about 7.9 years.
Frequently asked questions
What is a good ROI?
It depends on the period and risk: annualised, 7–10% is a long-run equity benchmark, 4–5% a safe cash return in 2026; a 20% ROI over one year is excellent, over ten years it is poor.
What is the difference between ROI and CAGR?
ROI is the total percentage gain regardless of time; CAGR spreads it evenly per year with compounding so investments of different lengths can be compared.
How do I calculate ROI on a rental property?
Cost = purchase price + buying costs + renovations; return = sale value (or current value) + net rent received; enter rent in the income field and expenses in extra costs.
Does it handle multiple deposits?
No — for staged investments or withdrawals use IRR (XIRR in Excel or Sheets), which weights each cash flow by its date.
How do I calculate ROI percentage?
Subtract the total cost from the total returned (including income), divide by the cost and multiply by 100.
What is a good CAGR?
Long-run stock markets have returned roughly 7–10% a year nominal; anything above that over a decade is exceptional, and a few percent above inflation is respectable for low-risk assets.
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