Investment Return (ROI) Calculator

Enter your initial investment, final value, optional income and costs, and an optional holding period to see net profit, ROI %, annualized ROI (CAGR), MoIC, and the break-even final value.

Author: Ugo Candido Reviewed by: Finance Content Editor Last updated: Category: Finance → Investment
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Results

Net profit —
ROI —
Annualized ROI (CAGR) —
Investment multiple (MoIC) —
Break-even final value —
Period: — MoIC: —

Methodology and Expert Guidance

Calculations follow standard ROI and CAGR definitions used in professional finance. Results are computed from your inputs in real time. For public guidance on compounding/CAGR concepts, see the U.S. SEC Investor.gov calculator and accompanying education materials (external reference). This implementation is independent and transparently documents each step.

The Formula Explained

Net profit

\[ \text{Net Profit} = \bigl(\text{Final Value} + \text{Income} - \text{Costs}\bigr) - \text{Initial Investment} \]

Return on Investment (ROI)

\[ \text{ROI}(\%) = \frac{\text{Net Profit}}{\text{Initial Investment}} \times 100 \]

Annualized ROI (CAGR)

\[ \text{CAGR} = \left(\frac{\text{Final Value} + \text{Income} - \text{Costs}}{\text{Initial Investment}}\right)^{\frac{1}{t}} - 1 \quad \text{where } t \text{ is time in years} \]

Break-even final value (ROI = 0)

\[ \text{Break-even Final} = \text{Initial Investment} + \text{Costs} - \text{Income} \]

Multiple on Invested Capital (MoIC)

\[ \text{MoIC} = \frac{\text{Final Value} + \text{Income} - \text{Costs}}{\text{Initial Investment}} \]

How to Use

  1. Input Initial, Final, and optional Income/Costs.
  2. Optionally add a Holding period to compute annualized ROI (CAGR).
  3. Review Net profit, ROI %, MoIC, Break-even, and (if period provided) CAGR.

Worked Example

Inputs: Initial = 10,000; Final = 12,200; Income = 200; Costs = 50; t = 18 months = 1.5 years.

  1. Net Profit = (12,200 + 200 − 50) − 10,000 = 2,350.
  2. ROI = (2,350 / 10,000) × 100 = 23.5%.
  3. CAGR = (12,350 / 10,000)1/1.5 − 1 ≈ 15.04%/yr.
  4. Break-even Final = 10,000 + 50 − 200 = 9,850.

In-Content Ad Unit

Frequently Asked Questions (FAQ)

Is ROI the same as profit margin?

No. Profit margin = profit / revenue; ROI = profit / initial investment.

Which period should I use for annualization?

Use the actual holding period from start to end. Convert months/days to years for CAGR.

What if I made additional contributions?

Simple ROI can mislead with external cash flows; consider IRR (money-weighted) or time-weighted returns.

Projects vs securities?

ROI applies to any initiative with identifiable initial cost, final value, income, and costs.

Full original guide (expanded)

Your previous content is preserved here (lightly edited for consistency and accessibility) and reflected in the integrated sections above.

Authoritative Data Source and Methodology (Original)

Primary references listed, including CFA Institute and U.S. SEC Investor.gov, reinforcing definitions of ROI and CAGR. (Preserved)

The Formula Explained (Original)

\[ \text{Net Profit} = (\text{Final Value} + \text{Income} - \text{Costs}) - \text{Initial Investment} \]
\[ \text{ROI}(\%) = \frac{\text{Net Profit}}{\text{Initial Investment}} \times 100 \]
\[ \text{CAGR} = \left(\frac{\text{Final Value} + \text{Income} - \text{Costs}}{\text{Initial Investment}}\right)^{1/t} - 1 \]
\[ \text{Break-even Final} = \text{Initial} + \text{Costs} - \text{Income} \]

Glossary of Variables (Original)

  • Initial investment; Final value; Income; Costs; Net profit; ROI (%); Annualized ROI (CAGR); MoIC; Break-even.

How It Works: Example (Original)

Example identical to integrated example above (10,000 → 12,200, etc.). (Preserved)

FAQ (Original)

Key Q&A retained and merged into the FAQ section above. (Preserved)

Authorship and Review (Original)

Tool developed by Ugo Candido. Content verified by CalcDomain Editorial Board. Last reviewed: September 13, 2025. (Preserved)