ROI Calculator
0% total return
Total ROI vs Annualized Return
Total ROI tells you the overall percentage gain or loss on your investment, regardless of how long you held it. Annualized return (CAGR — compound annual growth rate) converts that into a "per year" rate, which is what makes returns on investments held for different lengths of time comparable to each other.
Why a 50% Return Isn't Always Impressive
A 50% total return sounds great — but earned over 15 years, that's only about 2.7% annualized, worse than a typical savings account. Always check the annualized figure before judging whether a past return was actually good.
Projecting Future Returns Instead
This calculator looks backward at an investment you already know the outcome of. To project a future investment forward instead, use the investment calculator.
Frequently Asked Questions
What is CAGR?
CAGR (compound annual growth rate) is the annualized rate of return that would take your initial investment to its final value over the holding period, accounting for compounding.
Why does annualized return matter more than total return?
Annualized return makes investments held for different lengths of time comparable, since a large total return over many years may actually be a mediocre yearly rate.