ROI Calculator
Calculate Return on Investment (ROI) and Compound Annual Growth Rate (CAGR). Compare investment performance with percentages and dollar returns.
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ROI vs CAGR: What is the Difference?
Return on Investment (ROI) is a simple percentage that tells you how much your investment grew or shrank in total. It does not account for time. If you invested $10,000 and it became $15,000, your ROI is 50% — whether that took 1 year or 20 years.
Compound Annual Growth Rate (CAGR) smooths returns into a single annualized figure. It answers the question: "If my investment grew at the same rate every year, what would that rate be?" This makes CAGR far more useful when comparing investments held for different lengths of time.
CAGR = ((Final Value / Initial Value)^(1 / Years) - 1) × 100
Use ROI for a quick health check on a single investment. Use CAGR to compare investments, benchmark against market indices, or evaluate fund manager performance over time.
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