About This Tool
### Did You Beat the Market?
The S&P 500 historically returns about 10% per year. How did your investments compare?
Use this calculator to find your **ROI (Return on Investment)** and **CAGR (Compound Annual Growth Rate)**.
### ROI vs. CAGR
* **ROI**: Simple total growth. "I made 50% in 5 years."
* **CAGR**: The smooth annual rate. "That equals 8.4% per year."
CAGR is the better metric for comparing against benchmarks like the Stock Market or Real Estate appreciation.
Key Features
- **Simple ROI**: Instant percentage gain/loss calculation.
- **CAGR Calculation**: Advanced annualized return formula.
- **Benchmarking**: Know if your real estate or stock pick actually outperformed the index.
- **Loss Visualizer**: See red/green indicators for performance.
Frequently Asked Questions
What is a good ROI?
A 'good' ROI depends on the risk. The stock market averages ~10% annually. High-risk investments (crypto, startups) target 50%+, while safe bonds might offer 4-5%.
Why use CAGR instead of average return?
Average return can be misleading. If you lose 50% one year and gain 50% the next, your average is 0%, but you actually lost money (down 25% total). CAGR accounts for this geometric reality.
Does this include dividends?
You should include dividends in your 'Final Value' to get an accurate Total Return calculation.