ROI Calculator: Measure Your Investment Growth
Return on Investment (ROI) is the most popular metric for evaluating the profitability of an investment. It tells you how much money you made (or lost) relative to how much you spent.
ROI Formula
ROI = ((Final Value - Initial Investment) / Initial Investment) Ã 100
What is CAGR?
While ROI gives you the total growth, CAGR (Compound Annual Growth Rate) tells you how much your investment grew per year. This is crucial for comparing investments held for different time periods (e.g., comparing a 10-year real estate investment vs. a 3-year stock trade).