CalcWealth

Free Investment Calculator — ROI, CAGR & Final Balance

Enter your initial investment, expected annual return, time period, and optional annual contributions to instantly calculate your final balance, total gain, ROI, and CAGR.

Use this free investment calculator to project any investment's growth using the standard future value formula. Calculates ROI (return on investment), CAGR (compound annual growth rate), and a year-by-year breakdown — instantly, no sign-up required.

What Is an Investment Calculator?

An investment calculatorprojects how much a lump-sum investment will grow over time at a given annual return rate. It answers the most important question in personal finance: “If I invest $X today at Y% per year, how much will I have in Z years?”

This calculator goes further — it also computes your ROI (the total percentage gain), your CAGR (the equivalent annual growth rate), and a year-by-year breakdown so you can see exactly when your investment crosses key milestones.

For investors, the CAGR is the most useful metric because it lets you compare investments over different time horizons on equal footing. A 200% ROI over 20 years sounds impressive, but its CAGR is only 5.65% — barely ahead of inflation.

How to Use This Investment Calculator

  1. 1

    Enter Your Initial Investment

    This is the lump sum you are investing today. You can enter any amount from $1 to $10,000,000. This is your "principal" — the money that starts compounding immediately.

  2. 2

    Set the Expected Annual Return

    Enter the annual return you expect as a percentage. For US stock market projections, 7% (inflation-adjusted) or 10.5% (nominal) are common. For a bond portfolio, 3–5% is more realistic.

  3. 3

    Choose the Investment Period

    How many years will you hold the investment? The longer the time period, the more powerful compounding becomes. Try comparing 10, 20, and 30 years.

  4. 4

    Add Annual Contributions (optional)

    If you plan to add money each year (e.g. maxing a Roth IRA), enter that amount here. Even $1,000/year compounds significantly over 20–30 years.

ROI & CAGR Formulas Explained

ROI = (Final Value − Initial Value) / Initial Value × 100

Example: $10,000 → $19,672 in 10 years: ROI = (19,672 − 10,000) / 10,000 × 100 = 96.7%

CAGR = (Final Value / Initial Value)(1/years) − 1

Example: $10,000 → $19,672 in 10 years: CAGR = (19672/10000)(1/10) − 1 = 7% per year

Real-World Investment Examples

Use these as benchmarks for your own planning.

Conservative: $10,000 at 5% for 10 years (Bond Portfolio)

$10,000 at 5% annual return for 10 years grows to $16,289 — a total gain of $6,289 (63% ROI). CAGR = 5%. This is a realistic projection for a conservative bond portfolio or high-yield savings account.

Standard: $10,000 at 7% for 20 years (Index Fund)

$10,000 at 7% annual return for 20 years grows to $38,697 — a gain of $28,697 (287% ROI). CAGR = 7%, matching the historical inflation-adjusted return of the S&P 500. The market nearly quadruples your money in 20 years without a single additional deposit.

Growth: $50,000 at 10% for 30 years + $2,000/yr (Growth Portfolio)

$50,000 at 10% for 30 years with $2,000 annual contributions grows to $1,223,459. Total invested: $110,000. Total gain: $1,113,459. The investment returns more than 10× the amount deposited.

Frequently Asked Questions

What is ROI?
ROI (Return on Investment) is the percentage gain on your investment — $10,000 growing to $19,672 over 10 years at 7% gives an ROI of 97%, meaning you nearly doubled your money. ROI = (Final Value − Initial Value) / Initial Value × 100. It measures the total return, not the annual return rate.
What is CAGR?
CAGR (Compound Annual Growth Rate) is the annual return rate that would grow your investment from start to finish — $10,000 growing to $40,000 over 20 years has a CAGR of 7.2%. Unlike average return, CAGR accounts for compounding and gives you a single, comparable annual rate.
What is a good ROI?
A good ROI for long-term investing is 7–10% annually — the historical inflation-adjusted (7%) and nominal (10.5%) returns of the S&P 500 since 1957. Returns above 15% per year are exceptional and often carry higher risk. For savings accounts, 4–5% is considered good in the current rate environment.
How is CAGR calculated?
CAGR is calculated as: CAGR = (Final Value / Initial Value)^(1 / years) − 1. For example, $10,000 growing to $20,000 in 10 years has a CAGR of (20000/10000)^(1/10) − 1 = 0.0718, or 7.18% per year. This is the rate at which your investment must grow each year to produce the actual final result.
How much will $10,000 grow at 7% for 10 years?
$10,000 invested at 7% annual return for 10 years grows to $19,672 — a gain of $9,672 (97% ROI) with a CAGR of exactly 7%. Add a $1,000 annual contribution and the final balance reaches $33,543, turning $20,000 in total investment into $33,543. Time is the most powerful variable.
What is the difference between ROI and CAGR?
ROI measures total return over any period (e.g. 200% total over 20 years), while CAGR converts that into an equivalent annual rate (e.g. 5.65% per year). CAGR is better for comparing investments of different durations. ROI is better for understanding the total profit on a single investment.
Does this calculator account for taxes and inflation?
No — this calculator shows nominal pre-tax returns. For real purchasing power, subtract your expected inflation rate (≈3%) from the return rate. To estimate after-tax returns, multiply your return by (1 − tax rate): at 7% return with a 25% capital gains tax, the after-tax rate is approximately 5.25%.

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