liminfoROI Calculator
Free web tool: ROI Calculator
Total Return
+5,000,000
Total ROI
+50%
Annualized ROI
+14.47%
Multiple
1.5x
ROI Formulas
ROI = (Final Value - Initial Investment) / Initial Investment x 100
Annualized Return (CAGR) = (Final Value / Initial Investment)^(1/years) - 1
Investment Multiple = Final Value / Initial Investment
About ROI Calculator
The ROI Calculator computes four key investment performance metrics from just four inputs: initial investment amount, final portfolio value, investment period in years, and any additional income received during the holding period (such as dividends, interest, or rental income). The results include total absolute return in currency, total ROI percentage, annualized return (CAGR — compound annual growth rate), and the investment multiple (final value divided by initial investment).
The tool is useful for evaluating any type of investment: stocks, ETFs, real estate, business ventures, or private equity. By separating the total holding-period return from the annualized return, it lets you compare investments held for different lengths of time on a fair, apples-to-apples basis. A 50% total return over 10 years (4.1% CAGR) is very different from a 50% return over 2 years (22.5% CAGR), and this calculator makes that distinction instantly visible.
All three formulas — ROI, CAGR, and multiple — are displayed below the results so you can verify the math yourself. Processing occurs entirely in your browser, so no investment amounts or financial details are sent to any server.
Key Features
- Calculates total ROI percentage: (final - initial) / initial × 100
- Computes annualized return (CAGR): (final / initial)^(1/years) - 1
- Shows investment multiple: (final + income) / initial
- Supports fractional investment periods (e.g., 2.5 years) for accurate partial-year calculations
- Includes additional income field for dividends, interest, or rental cash flows
- Color-codes positive returns in green and negative returns in red for instant readability
- Displays all three underlying formulas transparently in the interface
- 100% client-side — your investment amounts never leave your browser
Frequently Asked Questions
What is ROI?
ROI (Return on Investment) is the percentage gain or loss on an investment relative to its initial cost. The formula is: ROI = (Final Value + Additional Income - Initial Investment) / Initial Investment × 100. A positive ROI means the investment gained value; a negative ROI indicates a loss.
What is CAGR and how is it different from ROI?
CAGR (Compound Annual Growth Rate) is the annualized rate at which an investment grew as if it had compounded at a steady rate each year. While total ROI measures the total percentage gain over the entire period, CAGR normalizes this to a per-year rate, enabling fair comparison between investments held for different durations. Formula: CAGR = (Final / Initial)^(1/years) - 1.
Why is annualized return different from total return divided by years?
Dividing total return by years gives an arithmetic average, which ignores compounding. CAGR accounts for the fact that returns compound on top of each other. For example, a 100% total return over 10 years is not 10% per year — it is only 7.18% CAGR because the gains from earlier years continue to grow in later years.
What counts as "additional income"?
Additional income includes any cash flows received during the holding period that do not change the final portfolio value. Common examples: dividends from stocks, interest payments from bonds, rental income from real estate, or distributions from a fund. Enter the total cumulative amount received over the entire investment period.
What is an investment multiple?
The investment multiple (also called the money-on-money multiple or MOIC in private equity) is simply the final value divided by the initial investment. A 2x multiple means you doubled your money; a 3x means you tripled it. Unlike ROI percentage, it does not account for the time value of money, but it is an intuitive measure of absolute wealth creation.
Can I calculate ROI for real estate?
Yes. For real estate, set the initial investment to your total acquisition cost (purchase price plus transaction costs), the final value to the current market value or sale proceeds, and the additional income to total net rental income received. The calculator will then show your total real estate ROI, annualized return, and equity multiple.
How should I handle a negative ROI?
Enter your actual initial and final values even if the final value is lower than the initial. The calculator will display a negative total return and a negative ROI percentage in red. Annualized ROI will also be negative, representing the annual rate at which you lost money. This is useful for tax-loss harvesting analysis or post-mortem investment reviews.
What is a good ROI?
A "good" ROI depends entirely on the asset class, risk level, and time period. Broad stock market indices have historically returned approximately 7-10% annually (CAGR). Real estate commonly achieves 5-8% including rental income. Short-term trading strategies may target higher returns but with correspondingly higher risk. Always compare ROI against an appropriate benchmark for the same asset class and time period.