Investment Return Calculator

Calculate your total return, annualized return, and ROI on any investment.

Initial Investment

Current / Final Value

Time Period (years)

A $70,000.00 investment growing to $100,000.00 over 5 years gives a 42.86% total return (7.39% annualized).

Total Gain/Loss$30,000.00

Total ROI42.86%

Annualized Return (CAGR)

7.39%

42.86% total ROI

How to Use This Calculator

Follow these steps for an accurate estimate. Results are based on 2026 tax rates and are for informational purposes only.

Enter the initial amount you invested — the price you originally paid. For stocks or ETFs, multiply your purchase price per share by the number of shares you bought.

Enter the current or final value of your investment. This should be the total market value today, not the gain. If you received dividends that were not reinvested, add them to the current value for a complete total return.

Enter the number of years you have held the investment. Even partial years affect the CAGR result. One year and six months should be entered as 1.5.

Click "Calculate." The results show three numbers: Total Gain in dollars, Total ROI as a percentage, and Annualized Return (CAGR). CAGR is the most useful metric for comparing investments held over different time periods.

Use CAGR for comparisons. A 100% total return over 2 years is a 41.4% CAGR, while 100% over 10 years is only 7.2% annually. CAGR normalizes everything to an annual rate so you can compare apples to apples.

ℹ

Important: These are estimates based on federal tax law. Your actual tax may differ based on additional deductions, tax credits, AMT, state rules, and other factors. Always verify with a qualified tax professional before making financial decisions.

Real-World Examples

Example: $10,000 in S&P 500 for 5 Years

Invested $10,000 in 2021, now worth $16,500.

Initial Investment$10,000

Current Value$16,500

Total Return$6,500 (65%)

Annualized Return10.5%

Takeaway: Annualized 10.5% CAGR is close to the historical S&P 500 average of ~10%.

Measuring Investment Performance

Key metrics: Total Return (overall %), Annualized Return/CAGR (average yearly), and Risk-Adjusted Return. CAGR is most useful for comparing investments held for different periods.

ROI vs CAGR

ROI shows total gain but ignores time. CAGR normalizes to annual basis. Formula: CAGR = (Ending/Beginning)^(1/Years) - 1.

Historical Returns

S&P 500: ~10% annually. US bonds: ~5%. Real estate: 8-12%. Bitcoin: extreme volatility with 100%+ average since 2010.

Frequently Asked Questions

If I invested $10,000 five years ago and it's now worth $25,000, what is my annualized return?

Your total gain is $15,000, which is a total return of 150% over five years. The annualized return — also called the compound annual growth rate — is 20.1% per year. This means your investment grew at an equivalent rate of 20.1% each year on a compounding basis, which is well above the long-term average of U.S. equity markets.

What is a good return on investment for stocks?

The S&P 500 index has averaged roughly 10% per year since its inception, or approximately 7% after adjusting for inflation. For a diversified portfolio, returns between 7 and 12% annually are generally considered strong. Any consistent return that outpaces inflation, which has historically run around 2 to 3%, preserves and grows your purchasing power over time.

How do I compare two investments with different time periods?

The compound annual growth rate, or CAGR, is the standard way to compare investments held over different lengths of time. A 100% total return over 2 years equals a CAGR of 41.4%, while the same 100% total return over 10 years equals only 7.2% annually. CAGR normalizes returns to an annual basis, making comparisons fair regardless of holding period.

If I invest $5,000 in Bitcoin, how do I calculate my profit?

Your profit is the current value minus your initial investment. If your $5,000 grew to $15,000, your profit is $10,000, representing a total return on investment of 200%. To find your annualized return, use the CAGR formula: divide the current value by the initial investment, raise it to the power of 1 divided by the number of years, then subtract 1 and multiply by 100.

What is the difference between ROI and CAGR?

ROI, or return on investment, measures your total percentage gain from start to finish without accounting for how long the investment was held. CAGR, or compound annual growth rate, converts that total gain into an equivalent annual rate. A 50% ROI over one year and a 50% ROI over five years look the same as raw returns, but the five-year CAGR is only 8.4% per year — very different from the one-year result.