Calculate your return on investment (ROI), net profit, and annualized return (CAGR).
An ROI (Return on Investment) calculator works out how much profit or loss an investment has generated relative to its cost, both as a total percentage return and as an annualised return (CAGR — Compound Annual Growth Rate). This is useful for comparing the performance of very different investments — such as property, a business, shares, or a side project — on a like-for-like basis.
ROI compares your net profit (final value minus everything you put in) to your total cost basis (initial investment plus any additional costs). The annualised ROI, or CAGR, spreads this total return evenly over the investment period, showing what constant annual growth rate would produce the same overall result — this makes it possible to compare investments held for different lengths of time.
Formula: Total Cost Basis = Initial Investment + Additional Costs. Net Profit = Final Value − Total Cost Basis. ROI % = (Net Profit ÷ Total Cost Basis) × 100. Annualised ROI (CAGR) % = [(Final Value ÷ Total Cost Basis)(1 ÷ Years) − 1] × 100.
Example: An investment with a £10,000 initial cost (no additional costs) that grows to a £15,000 final value over 5 years has a net profit of £5,000 — a total ROI of 50%. The annualised ROI (CAGR) is roughly 8.4% per year. (Note: all figures in this example are for illustration purposes only and are not a guarantee of any actual investment outcome.)
ROI is a widely used measure across UK property investment, small business analysis, and personal portfolio reviews, precisely because it's a simple ratio that works regardless of the investment type — though it's most meaningful when you include all relevant costs in your "total cost basis." For property, this might include Stamp Duty Land Tax, legal fees, and renovation costs alongside the purchase price; for shares, it might include trading fees and platform charges. The annualised ROI (CAGR) is particularly useful when comparing investments of different lengths — a 50% total return over 5 years (roughly 8.4% per year) is a very different result from a 50% total return over 1 year. Note that this calculator shows pre-tax figures — depending on the type of investment, any profit may be subject to Capital Gains Tax or Income Tax, which would reduce your actual net return.
ROI (Return on Investment) is the total percentage return over the whole investment period, regardless of how long that period was. CAGR (Compound Annual Growth Rate), shown here as "annualised ROI," spreads that total return evenly across each year, making it easier to compare investments held for different lengths of time.
No. This calculator shows your profit and ROI before tax. Depending on the type of investment, any profit may be subject to Capital Gains Tax (for shares, property, and other assets) or Income Tax (for some types of income). Consult a tax adviser for guidance specific to your situation.
Include any costs directly associated with acquiring, holding, or improving the investment that aren't already in your initial investment figure — for example, purchase fees, Stamp Duty Land Tax, legal fees, renovation costs, or trading commissions. Including these gives a more accurate picture of your true return.
This is expected for longer investment periods. A 50% total return over 5 years sounds large, but it works out to roughly 8.4% per year when compounded — the annualised figure (CAGR) reflects the actual year-on-year growth rate, while the total ROI is the cumulative effect over the whole period.
Yes. If the final value is less than your total cost basis, net profit will be negative, resulting in a negative ROI and a negative (or undefined, if the final value is zero or negative) annualised ROI. This reflects a loss on the investment.
Not separately. This calculator compares your total cost basis to a single final value. If your investment generated income along the way (e.g., rental income or dividends), you may want to add this to the "final value" to capture your total return, including income received.
Disclaimer: The information and figures provided on this page are for educational and illustrative purposes only and do not constitute financial, investment, or tax advice. Results shown are based on the figures you enter and do not account for tax, inflation, or other factors that may affect your actual return. Past performance is not a reliable indicator of future results. Always consult a qualified financial or tax adviser before making investment decisions.