ROI / CAGR Calculator
Enter an initial value, a final value and a holding period to see absolute return and Compound Annual Growth Rate.
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Enter assumptions that fit your investment scenario.
Sample inputs to see how the calculator works
Enter your assumptions
Complete the fields above to see your result. You can change any value at any time.
Understanding ROI / CAGR Calculator
ROI versus CAGR
Return on investment (ROI) measures the gain or loss relative to the initial amount. CAGR expresses a beginning-to-ending change as an annualised compound rate over the selected period, which can help compare investments held for different lengths of time.
CAGR describes a smoothed annual rate; it does not show the actual path of returns or the volatility experienced along the way. It can also be misleading when there are significant additional contributions or withdrawals during the period.
How to interpret the result
Enter a consistent starting value, ending value and time period. Check whether the result is a percentage gain, a multiple of the original value or an annualised rate before comparing it with another investment.
For investments with irregular cash flows, deposits or withdrawals, a cash-flow-based measure such as XIRR may be more appropriate than a simple ROI or CAGR calculation.
Calculation methodology
Absolute return compares the change between initial and final value. CAGR expresses that change as an annualised compound growth rate over the holding period.
Important assumptions
- Results are estimates based on the values you enter.
- Rates and returns are assumed for the projection period and may change in real life.
- Taxes, fees, market conditions and provider-specific rules may affect actual outcomes.
ROI / CAGR Calculator for clearer money decisions
Enter an initial value, a final value and a holding period to see absolute return and Compound Annual Growth Rate.
The calculator runs in your browser — nothing is stored on our servers. Switch between INR and USD at the top right of the workspace to see values in your preferred currency. Compare two sets of assumptions side by side.
What is the difference between ROI and CAGR?
ROI measures total gain or loss relative to the initial amount. CAGR expresses the start-to-end change as an annualised compound rate over the selected period.
When should I use XIRR instead of CAGR?
If you add or withdraw money on different dates, a cash-flow-based measure such as XIRR can better reflect the timing of those cash flows.
Can CAGR show the actual return earned each year?
No. CAGR smooths the overall change into one annual rate and does not show year-to-year volatility or the path of returns.
Does a positive ROI guarantee a good investment?
No. ROI alone does not show risk, inflation, taxes, fees, volatility or whether the return was appropriate for the time period and alternative choices.
Educational estimate only. Not investment, tax or legal advice. Please verify current rates, slabs, taxes, fees and rules before making a financial decision.