ROI & CAGR Calculator 2026
Measure return on investment and annualized growth rate (CAGR) for stocks, real estate & projects.
Total Return (ROI)
📈 Annualized Return (CAGR)
14.47%
Compound Annual Growth Rate over 3 years. CAGR is more accurate than simple ROI for multi-year investments.
ROI measures total return regardless of time. CAGR (Compound Annual Growth Rate) shows the smoothed annual rate of return, making it ideal for comparing investments of different durations.
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.
💸 Post-Tax & Real Returns (2026-27)
The Tax Impact
- Equity ROI: Deduct 12.5% for LTCG (>1 year) or 20% for STCG (<1 year) from your total gains.
- Debt ROI: Deduct your income tax slab rate (e.g., 30%) from the total interest earned.
- Dividend Tax: Dividends are taxed at your slab rate. Growth plans are usually more tax-efficient.
The Inflation Impact
- Real ROI Formula:
[(1 + ROI) / (1 + Inflation)] - 1. This is your actual purchasing power growth. - Nominal vs Real: A 12% nominal return with 6% inflation means your "real" wealth grew by only ~5.66%.
- Goal: Always target a post-tax, post-inflation ROI of at least 3-4% for true wealth creation.
📊 Investment Returns
What every investor should know about calculating true growth.
ROI vs CAGR vs XIRR
- •ROI: Simple total return. Use for quick one-time investments. Flaw: doesn't consider time.
- •CAGR: Annualized return assuming constant growth. Best for comparing lump-sum investments of different durations.
- •XIRR: Most accurate for SIPs and irregular cash flows. Accounts for timing of each investment.
- •Absolute vs Annualized: A fund showing "200% return" over 10 years sounds great, but its CAGR is only ~11.6%.
Common Mistakes
- •Ignoring fees and taxes: A 15% gross return becomes ~11% after expense ratio + tax + exit load.
- •Confusing paper gains with real: Your portfolio shows +50%? That's unrealized. You haven't made money until you sell.
- •Anchoring bias: Holding a losing asset because you paid ₹500 and it's ₹300. Would you buy it today at ₹300?
- •Not accounting for inflation: A 10% return with 6% inflation is really only 4% real growth.
Due Diligence Checklist
- ✅Check the 3, 5, and 10-year CAGR — not just recent 1-year performance.
- ✅Compare against a benchmark (Nifty 50). If the fund underperforms, switch to an index fund.
- ✅Never invest money you'll need in 1–2 years in equity. Volatility can destroy returns.
- ✅Diversify across asset classes (equity, debt, gold, real estate), not just across stocks.
- ✅Factor in tax impact: ELSS gives 80C benefit, debt funds have different tax treatment.
About Return on Investment (ROI) & CAGR: Investment Performance Analysis
Return on Investment (ROI) is a popular profitability ratio used to evaluate the efficiency of an investment. Our calculator also computes CAGR (Compound Annual Growth Rate), which provides the annualized return rate — essential for comparing investments held over different time periods.
How to Use
- 1Enter the total amount initially invested.
- 2Enter the final value of the investment (or expected exit value).
- 3Enter the Holding Period in years for CAGR calculation.
- 4View the ROI percentage (total return) and CAGR (annualized return) instantly.
- 5Analyze the absolute profit generated in dollar terms.
Key Benefits
- Simple ROI for quick profitability check.
- CAGR for accurate annualized comparison across investments.
- Universal metric for stocks, real estate, and business projects.
- Crucial for business project feasibility analysis.
- Compare investments with different holding periods fairly.
Mathematical Formula
ROI = ((FV - IV) / IV) × 100 | CAGR = (FV/IV)^(1/n) - 1Frequently Asked Questions
ROI measures total gain or loss as a percentage of initial investment, regardless of time. CAGR (Compound Annual Growth Rate) calculates the annualized rate of return over multiple years assuming steady growth.
The CAGR formula is: (Final Value / Initial Value)^(1 / Years) - 1. In Excel, you can use the RRI function or formula =((FV/PV)^(1/n))-1.
A 'good' ROI depends on asset risk. Stock market index funds historically yield 10-12% CAGR, real estate yields 8-10%, while fixed deposits yield 6-7%.