ROI (Return on Investment) measures the percentage gain or loss on an investment relative to its cost. It is calculated as (Final Value − Initial Investment) / Initial Investment × 100. A positive ROI means a profit; a negative ROI means a loss.

What is CAGR and how is it different from ROI?

ROI tells you the total percentage return over the entire holding period, regardless of how long you held the investment. CAGR (Compound Annual Growth Rate) normalizes that return into an equivalent annual rate, making it easy to compare investments held for different lengths of time. CAGR = (Final / Initial)^(1 / years) − 1.

What does the investment multiple mean?

The investment multiple (also called the money-on-money or MoM multiple) shows how many times your initial investment grew. A multiple of 2.0× means your money doubled; 0.5× means it was cut in half. It is simply Final Value divided by Initial Investment.

Yes. If the final value is less than the initial investment, the ROI will be negative, representing a loss. For example, investing $1,000 and receiving back $700 gives an ROI of −30%.

Why is CAGR only shown when I enter a holding period?

CAGR requires a time dimension. Without knowing how long you held the investment, it is mathematically impossible to annualize the return. Enter the number of years (decimals are supported) to enable the CAGR and annualized return display.

ROI Calculator

Name: ROI Calculator
Availability: InStock
Author: Nham Vu

Enter your initial investment and final value to instantly see ROI %, net profit, and annualized return (CAGR).

Investment Details

Currency Symbol

Initial Investment

Final Value

Holding Period (years) Optional

Enter years to unlock annualized return (CAGR).

Enter your investment details and click Calculate

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Summary

Enter your initial investment and final value to instantly see ROI %, net profit, and annualized return (CAGR).

How it works

Enter the amount you originally invested in the Initial Investment field.
Enter the current or final value of your investment in the Final Value field.
Optionally enter the holding period in years to see the annualized return (CAGR).
Select your preferred currency symbol from the selector.
Click Calculate to see your ROI %, net profit, CAGR, and investment multiple.

Use cases

An investor evaluating whether a stock position delivered an acceptable return over a multi-year holding period.
A small business owner measuring the ROI of a marketing campaign by comparing spend to revenue generated.
A real estate investor comparing the annualized return of a rental property against alternative investments.
A project manager calculating the return on a capital expenditure for a board presentation.

Frequently Asked Questions

Last updated: 2026-06-09 · Reviewed by Nham Vu