Free ROI Calculator — Total Return vs Annualized (CAGR)

Last updated: July 14, 2026

MoneyMath's ROI calculator computes total return, annualized CAGR, and dollar gain, then benchmarks the result against the same money compounding at 7% — separating investments that merely grew from ones that beat a simple index fund.

Free to useRuns in your browserSource-backed assumptions

Calculate total return on investment, annualized return (CAGR), and dollar gain from the initial investment, final value, and years held.

Separate a big total return from a mediocre yearly one — the same 50% gain is a very different investment over 3 years vs 15.

Compare your result against what the same money would have earned compounding at 7% in a broad index fund.

How to use this calculator

Step 1Enter your starting information. Add the core inputs requested by the ROI Calculator, such as amounts, dates, rates, income, weight, or other scenario details.
Step 2Review the calculated result. Read the headline answer first, then scan the supporting breakdown, chart, or comparison table.
Step 3Compare another scenario. Change one input at a time to understand what drives the result and which option is most realistic.

Formula, Sources & Assumptions

Formula

Total ROI = (final − initial) ÷ initial × 100. CAGR = ((final ÷ initial)^(1 ÷ years) − 1) × 100.

Assumptions

Uses only the initial investment, final value, and years held — include dividends, income, and fees in the final value for an accurate result.
Returns are nominal; inflation and taxes are not subtracted.
The 7% benchmark is a long-term planning assumption, not a guaranteed index return.

Sources

SEC Investor.govInvestor education on compound returns and comparing investments.

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