ROI & CAGR Calculator 2026
Return on investment is ending value minus starting value, divided by starting value. CAGR is the constant annual rate that turns the starting value into the ending value over the holding period.
Total Return on Investment
📈 Annualized Return (CAGR)
14.47%
Compound Annual Growth Rate over 3 years. CAGR is more accurate than simple ROI for multi-year investments.
$1,000 to $1,500 in 3 years is a 50% ROI and a $500 gain. The CAGR is about 14.47%. A 200% gain over 10 years, which is a tripling, is a CAGR of about 11.61%.
Financial & Tax Advice Disclaimer
This tool is provided strictly for educational, planning, and illustrative purposes. All figures, estimates, compounding formulas, and tax calculations are based on user input parameters and current mathematical models.
No Performance Guarantee & Liability: Output calculations do not guarantee future returns, exact bank interest payouts, market gains, or legal tax liability. Toolioz and its maintainers accept no legal or financial liability for investment losses, loan commitments, or tax penalties resulting from the use of this calculator.
What is not subtracted
Tax and fees
- Not applied: LTCG, STCG, a tax slab, and dividends are not taken off the ending value.
- Two values only: The page uses a starting value and an ending value.
- No expense ratio: Fees are not an input.
Inflation
- Not applied: (1 + return) ÷ (1 + inflation) − 1 is not calculated.
- Years affect CAGR only: ROI stays 50% for $1,000 to $1,500 no matter the holding period.
- XIRR: Irregular cash flows are not solved.
How ROI and CAGR are built
Two values and a holding period. The period changes CAGR and leaves ROI unchanged.
The two rates
- •ROI: (ending − starting) ÷ starting. Time is ignored.
- •CAGR: (ending ÷ starting)^(1 ÷ years) − 1.
- •Default: $1,000 to $1,500 in 3 years is 50% ROI and about 14.47% CAGR.
- •Tripling: A value that becomes 3 times as large in 10 years has a CAGR of about 11.61%.
Left out
- •Fees and tax: They are not subtracted from the ending value.
- •Cash flows: Deposits between the start and the end are not dated. XIRR is not calculated.
- •Inflation: A real return is not calculated.
- •Currency: Amounts are formatted in US dollars.
What changes the result
- ✅A longer holding period lowers CAGR when the two values stay the same.
- ✅ROI does not change when only the holding period changes.
- ✅A starting value of zero returns 0% ROI.
- ✅Absolute profit is ending value minus starting value.
- ✅A benchmark such as the Nifty 50 is not loaded.
About ROI and CAGR from two values
Return on investment is (ending value − starting value) ÷ starting value. CAGR is (ending ÷ starting)^(1 ÷ years) − 1. $1,000 to $1,500 in 3 years is a 50% ROI, a $500 gain, and a CAGR of about 14.47%. Changing only the years changes CAGR and leaves ROI at 50%. Tax, fees, inflation, dividends, and cash flows between the two dates are not included. Amounts are in US dollars.
How to Use
- 1Enter the starting value. The default is $1,000.
- 2Enter the ending value. The default is $1,500.
- 3Enter the holding period in years. The default is 3. It is used only for CAGR.
- 4Read ROI, which ignores the holding period.
- 5Read CAGR and the absolute profit, which is ending value minus starting value.
Key Benefits
- ROI for the default inputs is 50%.
- CAGR for those inputs is about 14.47%.
- A tripling in 10 years is a CAGR of about 11.61%.
- XIRR is not calculated.
- Amounts are formatted in US dollars.
Mathematical Formula
ROI = ((FV - IV) / IV) × 100 | CAGR = (FV/IV)^(1/n) - 1Frequently Asked Questions
ROI is (ending value − starting value) ÷ starting value. It ignores time. CAGR is (ending ÷ starting)^(1 ÷ years) − 1. It is the constant annual rate between those two values. Neither uses cash flows in between.
$1,000 growing to $1,500 in 3 years is a 50% ROI, a $500 gain, and a CAGR of about 14.47%.
No. It does not compare the result with stocks, real estate, or deposits, and it does not subtract tax or inflation.