What is Annualized ROI (CAGR)?

Annualized ROI reflects the geometric compound growth rate of an investment per year over the holding period, making multi-year investments comparable.

Updated: August 2026 • Verified v1.2

Return on Investment (ROI) & Compound Annual Return Calculator

Finance & MathPopular

Local Browser Execution: Your input is processed locally in your browser and is not sent to UTL servers.

Total_ROI% = (Profit / Initial) * 100; Annualized_ROI% = ((Final / Initial)^(1/Years) - 1) * 100

Was this calculation helpful?

Understanding Your Results

Calculates net profit, total cumulative ROI %, annualized return % (CAGR), and investment multiple ($X.XX return per $1.00 invested).

Practical Guidance & Next Steps

Comparing investments across different holding periods requires looking at Annualized ROI (CAGR) rather than simple total ROI.

What is this?

A financial calculator that measures the profitability and annualized efficiency of investments.

How does it work?

1. Enter initial investment capital. 2. Enter final returned value and holding period in years. 3. View net profit, total ROI %, annualized CAGR, and capital multiple.