How to use this calculator
- Enter initial investment, final value including distributions, holding period (years).
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
No intermediate contributions or withdrawals. Include distributions and costs consistently in the ending amount. The annualized result is a smoothed historical rate, not a future return forecast.
Worked example
An investment growing from 1,000 to 1,210 over two years has total ROI of 21% and annualized return of 10%.
What the result means
Use cash-flow methods for investments with deposits or withdrawals. Annualization hides the variation between individual years.
Common questions
Is annualized ROI the same as CAGR here?
Yes, for one positive initial value and one ending value without intermediate cash flows.
Can the entire investment be lost?
Yes. A zero ending value gives total and annualized return of −100% under this simple model.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.