Savings, CDs and tax
ROI Calculator
The return on an investment, in total and as a compound yearly rate (CAGR), from what you put in, what it's worth and how long you held it.
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CAGR for a doubling, by years held
| Years to double | Yearly return |
|---|---|
| 3 | 25.99% |
| 5 | 14.87% |
| 7 | 10.41% |
| 10 | 7.18% |
| 15 | 4.73% |
| 20 | 3.53% |
How this calculator works
ROI = (end value − amount invested) ÷ amount invested. CAGR = (end ÷ start)^(1 ÷ years) − 1: the steady yearly rate that gets from one to the other.
Questions people ask
What is the difference between ROI and CAGR?
ROI is the total return over the whole period; CAGR spreads it into a yearly compounded rate, so investments held for different lengths can be compared.
What is a good return on investment?
It depends on the risk: savings accounts pay a few percent; broad US stock indexes have averaged roughly 10% a year over long periods, with big swings.
Does ROI account for time?
No: a 50% return is great over two years and poor over twenty. That is why CAGR, which divides the return into years, is better for comparing.
How do I calculate annualized return?
Divide the end value by the start, raise it to 1 ÷ years, and subtract 1: $10,000 growing to $16,000 in 5 years is 9.86% a year.
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Updated by the RateHerald team. The maths is tested against worked examples; report a problem.