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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)

Investment Return Calculator – ROI & CAGR

Return on Investment (ROI) tells you how much your investment has gained or lost relative to the original capital. It is one of the most widely used metrics for evaluating and comparing the profitability of investments, real estate, and business ventures.

Formulas

Total Return (ROI):

ROI = (End Value − Initial Investment) ÷ Initial Investment × 100%

Compound Annual Growth Rate (CAGR):

CAGR = (End Value ÷ Initial Investment)^(1/years) − 1

CAGR converts total return into an equivalent annual rate, making it possible to compare investments held for different time periods.

Worked Example

You invested $10,000 in an S&P 500 index fund that grew to $16,500 over 5 years:

  • ROI: ($16,500 − $10,000) ÷ $10,000 × 100 = 65%
  • CAGR: ($16,500 ÷ $10,000)^(1/5) − 1 = 10.5%/year

Return Comparison Table

InvestmentPeriodROICAGR
$10,000 → $15,0005 years50%8.4%/yr
$10,000 → $20,00010 years100%7.2%/yr
$10,000 → $12,0002 years20%9.5%/yr
$50,000 → $45,0003 years−10%−3.4%/yr
$10,000 → $40,00015 years300%9.7%/yr

Historical Average Returns by Asset Class

Understanding typical returns helps set realistic expectations:

Asset ClassAvg. Annual ReturnRisk Level
S&P 500 (U.S. large-cap stocks)~10%High
Total U.S. Stock Market~10%High
International stocks (MSCI EAFE)~7–8%High
U.S. corporate bonds~5–6%Medium
U.S. Treasury bonds~3–5%Low
Real estate (REITs)~8–10%Medium-High
High-yield savings / CDs~4–5%Very Low
Inflation (CPI)~3%—
Returns shown are long-term historical averages before inflation. Past performance does not guarantee future results.

The Rule of 72

The Rule of 72 provides a quick estimate of how long it takes your money to double:

Years to Double = 72 ÷ Annual Return Rate

Annual ReturnDoubles In
4%18 years
6%12 years
8%9 years
10%7.2 years
12%6 years

When to Use ROI vs. CAGR

  • ROI is best for evaluating the total return of a single, completed investment
  • CAGR is essential when comparing investments held for different lengths of time

For example, a 100% return over 10 years sounds impressive, but CAGR reveals it is only 7.2%/year. Meanwhile, 20% return over 2 years corresponds to 9.5% annual return — actually the better performer on an annualized basis.

Real Return vs. Nominal Return

Nominal returns are the raw percentage gain. Real returns subtract inflation, showing your actual purchasing power growth:

Real Return ≈ Nominal Return − Inflation Rate

If your investment earned 10% but inflation was 3%, your real return is approximately 7%. Always consider real returns when evaluating long-term investment performance.

Frequently Asked Questions

How is investment return calculated?

ROI = (Final Value − Initial Value) ÷ Initial Value × 100. For example, investing $1,000 that grows to $1,200 gives a 20% return.

What is a good annual return on investment?

The S&P 500 has historically averaged about 10% annual return before inflation (~7% after). Returns above this benchmark are considered excellent. Safe investments like bonds return 3–5%.

What is the difference between simple return and annualized return?

Simple return measures total gain over the entire holding period. Annualized return (CAGR) converts total return into an equivalent yearly rate, allowing fair comparison across different time horizons.

How does compounding affect investment returns?

Compounding means earning returns on both your original investment and prior gains. Over long periods this dramatically accelerates growth — $10,000 at 10% becomes $67,275 in 20 years without adding any money.

What is the Rule of 72?

The Rule of 72 estimates how long it takes to double your investment: divide 72 by the annual return rate. At 8% annual return, your money doubles in about 9 years (72 ÷ 8 = 9).

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