Angel Investment Calculator: Return on a Startup Stake
See how an angel investment in a startup performed by setting the cash put in against what the stake returned at exit.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year value projection
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Total ROI | Annualized ROI | Net profit |
|---|---|---|---|
| $25k in · $90k out · 7yr | 260.00% | 20.08% | $65,000.00 |
| $10k in · $0 out · 5yr | -100.00% | 0.00% | -$10,000.00 |
| $50k in · $500k out · 9yr | 900.00% | 29.15% | $450,000.00 |
| $15k in · $20k out · 6yr | 33.33% | 4.91% | $5,000.00 |
How This Calculator Works
Enter the amount invested in the startup and the value the stake returned at exit — an acquisition, IPO, or secondary sale. Add the years held. The calculator reports the profit, the total return, and the annualized return.
The Formula
Return on Investment
V_start = amount invested, V_end = amount returned; annualized ROI = (V_end / V_start)^(1/n) − 1
Worked Example
A $25,000 angel stake that returns $90,000 after 7 years is a $65,000 profit — a 260% total return, or about 20.1% a year annualized. That single number, though, says nothing about the bets that returned nothing.
Key Insight
Angel investing lives or dies at the portfolio level. Most startups return little or nothing, so a few large winners must carry the whole portfolio — judge the strategy across many investments, not by one.
Frequently Asked Questions
What is angel investing?
Angel investing is putting personal capital into early-stage startups in exchange for equity, in the hope of a large return if the company is later acquired or goes public.
What is a realistic angel return?
Most startups fail or return little. The model is portfolio-based: a small number of large winners must outweigh many losses, so individual returns vary enormously.
Does this account for dilution?
No. Later funding rounds can dilute an early stake. Enter the actual value your stake returned at exit, after any dilution, for an accurate figure.
What if the startup failed?
Enter an exit value of zero. The calculator will show a total loss — a common and expected outcome for individual angel investments.
How illiquid is an angel investment?
Very. There is usually no way to sell before an exit, which can take many years or never come. The annualized return cannot capture that lack of liquidity.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 3 independent, dated sources.
Methodology & Review
Return is measured from the amount invested in the startup and the value returned at exit. Annualized return is the constant yearly rate over the holding period; dilution and failed investments are not modeled.
Written by Ugo Candido · Last updated May 17, 2026.