📊 ROI Calculator
Calculate return on investment — total ROI, annualized return, and net profit for any investment over time.
Enter your values
- Annualized ROI (CAGR)16.96%
- Net profit / loss€3,000.00
- Growth multiple1.6
What this means
- Total return: 60%
- Annualized return: 16.96%
- Net profit: €3,000.00
Visual results
Detailed breakdown
| Year | Portfolio value |
|---|---|
| 1 | €5,848.04 |
| 2 | €6,839.90 |
| 3 | €8,000.00 |
About this calculator
What is ROI?
Return on Investment (ROI) is a simple percentage that measures the gain or loss on an investment relative to its cost. It answers the question: “For every euro I put in, how much did I get back?”
Total ROI vs annualized ROI
Total ROI tells you the overall gain regardless of time. Annualized ROI (also called CAGR) converts that total into a yearly rate, making it possible to compare a 3-year investment with a 10-year one on equal footing.
Using the growth multiple
The growth multiple (e.g. 1.6×) tells you how many times your original investment has grown. A multiple of 2× means your investment doubled; 0.8× means you lost 20%.
ROI limitations
ROI doesn’t account for risk, inflation, or the time value of money. Two investments with the same ROI can be very different if one is volatile and one is stable. Always pair ROI with other metrics like risk-adjusted return or comparison to a market benchmark.
Frequently asked questions
What is ROI?
ROI (Return on Investment) measures the gain or loss relative to the initial investment: (Final Value − Initial Cost) / Initial Cost × 100. It's a simple percentage that lets you compare different investments regardless of size.
What is the difference between ROI and annualized ROI?
Total ROI ignores time — a 50% return looks the same whether it took 1 year or 10. Annualized ROI (CAGR) converts the total return into an equivalent yearly rate, making it comparable across investments of different durations.
What counts as a good ROI?
It depends on the investment type and risk. Historically, broad stock market indices return around 7–10% annually. A private business or real estate deal might target 15–25%+. Always compare against a relevant benchmark and adjust for risk.