ROI Calculator with Annualized Returns (CAGR) – Compound Growth

Use this advanced ROI Calculator with Annualized Returns to calculate your investment returns based on compound growth.

Use this advanced ROI Calculator to calculate your investment returns based on compound growth. Unlike simple ROI, this version accounts for how your money grows when gains are reinvested over time—ideal for SIPs, stocks, mutual funds, and long-term assets.

📘 What is Compound ROI?

Compound ROI, also called CAGR (Compound Annual Growth Rate) or Annualized Return, measures how much your investment has grown on average each year, assuming profits are reinvested annually.

It provides a clearer picture of true investment performance compared to simple ROI, which only looks at overall gain without considering compounding.

📊 Compound ROI Formulas

1. CAGR (Compound Annual Growth Rate):

\[ \text{CAGR (\%)} = \left( \frac{\text{Final Value}}{\text{Initial Investment}} \right)^{\tfrac{1}{n}} – 1 \]

Where:

• Initial Investment = Amount invested at the start
• Final Value = Value of investment at the end
• n = Duration of investment (years)

2. Total Gain:

\[ \text{Total Gain} = \text{Final Value} – \text{Initial Investment} \]

3. Total ROI (%):

\[ \text{Total ROI} = \left( \frac{\text{Final Value} – \text{Initial Investment}}{\text{Initial Investment}} \right) \times 100 \]

🔍 Example Calculation

Suppose you invest ₹1,00,000 and it grows to ₹2,00,000 in 5 years.

• Total ROI:

\[ \left( \frac{200000 – 100000}{100000} \right) \times 100 = 100\% \]

• CAGR:

\[ \left( \frac{200000}{100000} \right)^{\tfrac{1}{5}} – 1 = (2)^{0.2} – 1 \approx 14.87\% \]

✅ This means your investment doubled in 5 years with an annualized growth rate of 14.87%.

🎯 Use Cases for CAGR ROI

• Mutual funds & stock market performance
• Fixed deposits and bonds with compound interest
• Crypto, ETFs, and long-term assets
• Real estate investment growth
• Startups or businesses tracked over multiple years

🛠️ How to Use This Calculator

1. Enter your initial investment
2. Enter the final value after the investment period
3. Input the duration in years
4. Click Calculate
5. View results including:
   • Total ROI (%)
   • Annualized ROI (CAGR %)
   • Total Gain
   • Year-by-year breakdown with chart & CSV export

❓ FAQ – ROI & CAGR

Q1. What is the difference between ROI and CAGR?
👉 ROI shows the overall return as a percentage, while CAGR shows the average annual growth rate after compounding.

Q2. Why is CAGR better than simple ROI?
👉 CAGR accounts for time and compounding, giving a more accurate picture for multi-year investments.

Q3. Can CAGR be negative?
👉 Yes. If the final value is less than the initial investment, CAGR will be negative, indicating a loss.

Q4. Does this calculator support all currencies?
👉 Yes. It auto-detects your currency (USD, INR, EUR, GBP, JPY) and adjusts the output with the correct symbol.

Q5. Is CAGR the same as IRR?
👉 No. CAGR assumes a smooth annual growth rate, while IRR (Internal Rate of Return) accounts for cash inflows and outflows at different times.

Q6. Who should use this calculator?
👉 Investors, traders, financial planners, and anyone analyzing long-term growth of investments like stocks, SIPs, crypto, bonds, or property.