# ROI and Rate of Return Calculator

> Calculate return on investment (ROI) and the annualized rate of return on any investment. Enter what you put in and what it is worth now.

**URL:** https://www.calculatoranswers.com/rate-of-return-calculator
**Category:** Money

## Quick Answer

Calculate return on investment (ROI) and the annualized return (CAGR) on an investment. Enter the initial and final values, plus the number of years if you want the annualized return.

## Definition

Return on investment (ROI), also called total rate of return, is the net gain or loss of an investment over a specified time period, expressed as a percentage of the investment's initial cost. It indicates the efficiency and profitability of a capital allocation. An annualized rate of return (CAGR) measures the geometric mean return per year, allowing direct comparison of investments held over different durations. Financial analysts and individual investors use it to evaluate stocks, mutual funds, real estate, and portfolio performance.

## How to Use

1. **Enter initial value** — Type the starting balance or cost of the investment.
2. **Enter final value** — Type the ending balance or current value of the investment.
3. **Enter years (optional)** — Specify the length of the investment period in years to compute the annualized rate of return.

## Disclaimer

This calculator provides estimates for educational and planning purposes. Always consult a qualified professional for specific advice on financial, medical, legal, or other regulated decisions.

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