INVESTING CHANNEL
Portfolio Return Calculator
Calculate total gain, simple ROI, and annualized returns (CAGR) for your investment portfolio.
Calculator Variables
Calculation Overview
Calculate the total and annualized ROI (Return on Investment) of your financial portfolio easily.
Mathematical Model & Formula
CAGR = (Ending / (Starting + Deposits))^(1/t) - 1
Calculates the annual geometric rate of return that would grow the investment base to its final value over the specified years.
Variables Defined:
- CAGR: Compound Annual Growth Rate
- Ending: Ending portfolio value
- Starting: Starting portfolio value
Worked Example Scenario
Scenario: Grew $10,000 starting + $5,000 deposits to $25,000 over 5 years.
- Ratio = $25,000 / $15,000 = 1.6667
- Annualized power = 1.6667^(1/5) = 1.1076
Result: CAGR is 10.76%.
Frequently Asked Questions
What is the difference between Simple ROI and CAGR?
Simple ROI measures total growth over the entire timeframe, while CAGR breaks it down to a consistent annual compound rate.