ROI and CAGR Calculator
Calculate the total gain, the return on investment percentage and the compound annual growth rate between a starting and an ending value.
Formula and method
Total gain: ending value − starting value.
ROI: ((end − start) ÷ start) × 100.
CAGR: ((end ÷ start) 1/years − 1) × 100, defined only for positive values over a positive period.
Worked example
A holding bought for €100 is worth €150 two years later.
ROI = ((150 − 100) ÷ 100) × 100 = 50%.
CAGR = ((150 ÷ 100) 1/2 − 1) × 100 ≈ 22.47% a year — lower than 25%, because the second year compounds on the first.
FAQ
Frequently asked questions
What is the difference between ROI and CAGR?
ROI is the total percentage return over the whole period. CAGR is the constant annual rate that would produce the same result, so it lets periods of different lengths be compared.
How is CAGR calculated?
CAGR = ((end ÷ start) ^ (1 ÷ years) − 1) × 100. Growing €100 to €150 over two years is a CAGR of about 22.47%.
Why is CAGR unavailable for some inputs?
The formula takes a root of the ratio between the two values, so it needs a positive start value, a positive end value and a period longer than zero.
Should I include contributions made during the period?
No. ROI and CAGR compare two point-in-time values. If money was added or withdrawn during the period, a money-weighted measure such as IRR is more appropriate.
Are dividends included?
Only if you include them in the ending value. Enter the total value including reinvested income to measure total return.
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