Measure how well an investment performed with total return, dollar gain, and annualized return (CAGR).
There are two return numbers that matter, and they answer different questions. Total return (ROI) is the simple percentage gain or loss: (final value − amount invested) ÷ amount invested. Annualized return (CAGR) smooths that gain into an equivalent yearly rate, which is the only fair way to compare investments held for different lengths of time.
A 60% total return sounds great, but over what period? If it took ten years, that's only about 4.8% per year — worse than many savings accounts. The compound annual growth rate (CAGR) answers "how fast did this actually grow per year?" using CAGR = (final ÷ initial)1/years − 1. Always compare investments by their annualized return, not their headline total.
The U.S. stock market has historically delivered roughly 10% annualized before inflation, or about 7% after. Beating that consistently is hard; trailing it badly is a signal to re-examine fees and strategy. Use CAGR to benchmark any single holding against that baseline.
Tip: This calculator measures price return only. For a complete picture, add reinvested dividends to your final value before calculating — that's your total return.
Divide 72 by your annualized return to estimate how many years it takes to double your money. At a 9.7% CAGR, your investment doubles in roughly 7.4 years — a quick sanity check on any return figure.