ROI Calculator

Total return, annualized return, and cash-on-cash multiple for any investment with a holding period.

How the math works.

Total ROI = (Final - Initial + Income) / Initial × 100 Annualized ROI = (Final/Initial)^(1/years) - 1 × 100 Cash Multiple = Final / Initial Where: Initial = amount invested Final = current/exit value Income = dividends/distributions received Years = holding period

Return on Investment (ROI) is the simplest measure of investment performance: total gain divided by amount invested, expressed as a percentage. It does not account for time, which makes it misleading for comparing investments held over different periods.

Annualized return (also called Compound Annual Growth Rate, or CAGR) solves this by calculating the constant annual rate that would produce the observed total return. A 100% gain over 10 years is an annualized return of 7.2% — far less impressive than the raw number suggests.

The cash multiple (Final Value ÷ Initial Investment) is the language of private equity and venture capital. A "3x return" means you tripled your money, regardless of how long it took. Always consider the multiple and the annualized return together: a 3x in 2 years is exceptional; a 3x in 15 years is merely adequate.

Income received during the holding period — dividends, rent, distributions — should be added to the gain. Omitting them understates the true return.