Investment Tools

ROI Calculator

Calculate and compare your investment returns

Calculate ROI

Enter your investment details to calculate return on investment

Amount you invested
Current or exit value
โšก Quick Examples

Annualized ROI (CAGR)

Calculate your compound annual growth rate

๐Ÿ”ฎ Future Value Calculator

If you invest at a given rate, what will your money be worth?

Compare Investments

Compare multiple investments side by side

Investment A Option 1
Investment B Option 2

NPV & Payback Analysis

Analyze investments with multiple cash flows

Upfront cost (entered as positive)
Required rate of return

Cash Flows by Year

Year 1
Year 2
Year 3
Year 4

ROI Reference

Formulas, concepts, and investment benchmarks

๐Ÿ“ Key Formulas
Simple ROI
ROI = (Final - Initial) รท Initial ร— 100%
CAGR (Compound Annual Growth Rate)
CAGR = (Final รท Initial)^(1/years) - 1
Future Value
FV = PV ร— (1 + r)^n
Net Present Value
NPV = ฮฃ CFt รท (1 + r)^t - Initial
Rule of 72
Years to Double = 72 รท Annual Rate%
๐Ÿ“– Key Terms
ROI (Return on Investment)

The percentage gain or loss on an investment relative to its cost. Shows efficiency of investment.

CAGR

Compound Annual Growth Rate - the annualized rate of return that smooths out volatility.

NPV (Net Present Value)

The difference between present value of cash inflows and outflows. Positive NPV = good investment.

Discount Rate

The required rate of return used to calculate present value. Reflects opportunity cost and risk.

๐Ÿ“Š Historical Average Returns
Asset Class Historical Avg Return Risk Level
S&P 500 (Stocks) 10-11% High
Real Estate 8-12% Medium-High
Corporate Bonds 5-7% Medium
Government Bonds 3-5% Low
Savings Account 1-4% Very Low
Inflation (benchmark) 2-3% -

Note: Past performance does not guarantee future results. These are long-term historical averages.

Understanding ROI

Why ROI Matters

ROI helps you evaluate the efficiency and profitability of investments.

  • Compare different investment options
  • Measure performance over time
  • Make data-driven decisions
  • Set realistic expectations
Improving Returns

Strategies to maximize your investment returns:

  • Diversify your portfolio
  • Minimize fees and costs
  • Invest for the long term
  • Reinvest dividends
Limitations of ROI

Keep these limitations in mind:

  • Doesn't account for time
  • Ignores risk factors
  • Can be manipulated
  • Past โ‰  future results

๐ŸŽฎ Test Your Investment Knowledge

Challenge yourself with these fun mini-games about ROI and investing!

๐Ÿงฎ Quick ROI!

Calculate ROI as fast as you can!

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๐Ÿ“Š Better Investment?

Which investment performed better?

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๐Ÿง  Investment Trivia!

Test your knowledge of investing!

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