ROI & CAGR Calculator
Enter a starting value, an ending value, and the number of years between them to calculate both your total return and your annualized (compound annual) growth rate.
Last updated: September 22, 2026
Frequently asked questions
What's the difference between ROI and CAGR?
ROI (return on investment) is your total percentage gain or loss over the whole period, with no regard for how long it took. CAGR (compound annual growth rate) is the constant annual growth rate that would produce the same result - it lets you fairly compare an investment held for 3 years against one held for 10 years, which raw ROI can't do since a bigger total return over a longer period isn't automatically "better" per year.
If my investment grew from $10,000 to $25,000 over 5 years, what's my ROI and CAGR?
ROI is 150% (a $15,000 gain on a $10,000 start). CAGR is about 20.1% per year - the constant annual rate that compounds $10,000 up to $25,000 over exactly 5 years.
Why is CAGR lower than dividing total ROI by the number of years?
Because CAGR accounts for compounding - each year's growth builds on the previous year's already-grown value, not just the original starting amount. Simple division (total ROI ÷ years) ignores that compounding effect and overstates the true annual growth rate for any investment held more than one year.
Can ROI or CAGR be negative?
Yes - if your ending value is lower than your starting value, both ROI and CAGR come out negative, representing a loss. This calculator handles that the same way as a gain; just enter your actual ending value even if it's lower than the starting one.
Is this the same as the IRR/NPV calculator?
No - this calculator handles the simpler, more common case: one starting value and one ending value over a fixed period, with no cash flows in between. The IRR/NPV calculator is for a more complex scenario - a series of cash flows in and out at different times (like an investment with multiple contributions or withdrawals) - use that one if your situation involves more than a single start and end value.
Does CAGR account for volatility along the way?
No - CAGR only looks at the starting and ending values, smoothing out however bumpy the actual path was in between. Two investments can have the identical CAGR while one grew steadily and the other had wild swings up and down - CAGR alone doesn't tell you about that risk, only the net effect over the full period.
What's a good CAGR to expect from a stock market investment?
Historically, diversified US stock market index funds have averaged a CAGR of roughly 7-10% over multi-decade periods (before inflation), though any specific shorter period - including individual years - can vary widely above or below that range.