How to use the Investment ROI Calculator

This tool calculates your Total Return on Investment (ROI) and Annualized Return (CAGR) to evaluate how well your investment is performing.

1. Enter Values

• Initial Investment: The total amount you originally invested (Base capital + fees).
• Final Value: The current value of the investment or the price you sold it for.
• Holding Period: How many years you have held the investment (can use decimals like 1.5 years).

2. Key Metrics

• Total ROI: The simple percentage return over the entire period.
• Annualized Return (CAGR): This is the most important metric. It tells you the average yearly growth rate, allowing you to compare different investments (e.g., Stock vs. Real Estate vs. Savings) fairly.

3. Example

If you buy a stock for 100M and sell it for 150M after 3 years:

• Total ROI: 50%
• Annualized Return: ~14.47% (meaning the investment grew by an average of 14.47% each year).