ROI Calculator 2026
Evaluating an opportunity? See what it actually returns.
Calculate ROI (Return on Investment) for any investment in United States. Enter what you invested and what you received back. Shows total ROI percentage, gain or loss, and annualised return per year.
Past returns do not guarantee future performance. Consider tax on investment gains.
Return on Investment formula and annualised (CAGR) return
Two key metrics
Total ROI = (Return − Investment) ÷ Investment × 100. On $10,000 returning $15,000: ROI = 50%.
CAGR (Compound Annual Growth Rate) = (Return/Investment)^(1/years) − 1. Over 5 years, 50% total ROI = 8.45% per year CAGR. CAGR is the better metric for comparing investments held different lengths of time.
What good ROI looks like across asset classes in United States
| Asset class | Typical annual return | Risk level |
|---|---|---|
| High-yield savings | 4–5% | Very low |
| S&P 500 index | 9–10% | Medium |
| Property (US) | 6–10% (incl. yield) | Medium |
| Small cap / growth | Highly variable | High |
ROI vs CAGR vs IRR — which measure when
"Return" is not a single number. The three measures investors actually use — ROI, CAGR, and IRR — answer different questions, and using the wrong one will flatter or penalize an investment by orders of magnitude. The SEC's Investor.gov glossary is the canonical US reference.
ROI — simple total return
ROI = (Final Value − Initial Value) / Initial Value. A $10,000 investment that becomes $15,000 has a 50% ROI. It ignores time entirely, which is its biggest flaw: 50% over 2 years and 50% over 20 years look identical.
CAGR — annualized return
CAGR = (Ending / Beginning)^(1/years) − 1. The same $10,000 → $15,000 over 2 years is 22.5% CAGR; over 20 years it is only 2.05%. CAGR is the right tool for comparing a stock, an index fund, and a rental property held for different lengths of time, because it levels the time axis.
IRR — irregular cash flows
When money goes in and out on multiple dates (rental property with mortgage paydown, a private-equity fund with capital calls and distributions, or a small business), CAGR breaks down because there is no single "beginning" balance. Internal Rate of Return is the discount rate that makes net present value zero across all cash flows. Excel's =IRR() and =XIRR() functions are the standard way to compute it.
Worked example
Buy a rental at $200,000 with $40,000 down. Over 5 years you put in $12,000 of capex, collect $70,000 of net cash flow, and sell for $260,000 with $150,000 mortgage payoff (net $110,000). ROI on equity = ($70,000 + $110,000 − $40,000 − $12,000) / $52,000 = 246%. CAGR on that = 28.3%. IRR using annualized cash flows is typically lower, around 22-24%, because it discounts the big terminal sale back to today. For any investment held more than one year, quote CAGR or IRR — never just ROI.
US capital gains tax on ROI in 2026
Reported ROI and after-tax ROI are usually very different numbers. In a taxable brokerage, The IRS taxes realized gains at rates that depend on holding period and total income. Short-term gains (asset held one year or less) are taxed as ordinary income, reaching 37% at the top federal bracket. Long-term gains (held more than one year) enjoy the preferential long-term capital gains schedule.
2026 long-term capital gains brackets
| Rate | Single filer | Married filing jointly | Head of household |
|---|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 | Up to $66,200 |
| 15% | $49,451 – $545,500 | $98,901 – $613,700 | $66,201 – $579,600 |
| 20% | Over $545,500 | Over $613,700 | Over $579,600 |
Source: IRS Topic 409 — Capital Gains and Losses.
Net Investment Income Tax (NIIT)
An additional 3.8% NIIT applies to investment income above modified AGI thresholds of $200,000 (single), $250,000 (MFJ), $125,000 (MFS). Collectibles (gold, art, coins) are taxed at a special 28% max; Section 1250 real-estate depreciation recapture at up to 25%.
State tax layers on top
Nine states — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington (except on a 7% capital-gains excise over $270k), and Wyoming — levy no personal income tax on standard capital gains. California taxes capital gains as ordinary income up to 13.3%; New York up to 10.9%; New Jersey up to 10.75%. A California resident in the top bracket effectively pays 37.1% (20% + 3.8% + 13.3%) on long-term gains — meaning a 10% quoted return is closer to 6.3% after tax.
Frequently askedFrequently asked questions
What is the difference between ROI and CAGR?
ROI (Return on Investment) is the total percentage gain or loss on an investment. CAGR (Compound Annual Growth Rate) is the equivalent annual growth rate that would produce the same total return over the holding period. CAGR is more useful when comparing investments held for different lengths of time. A 50% ROI over 2 years (22.5% CAGR) is much better than 50% over 10 years (4.1% CAGR).
Do I pay tax on investment returns in the US?
Yes. In the US, capital gains tax applies to investment profits. Long-term gains (held >1 year): 0%, 15%, or 20% depending on income. Short-term gains: taxed as ordinary income (10–37%). Qualified dividends: taxed at the same long-term rates. 401k and IRA accounts defer or eliminate tax.
Where these figures come from
Business figures on this page are drawn from The IRS (business tax), the US Small Business Administration (loan & program rules), and The Federal Reserve (commercial interest-rate data).
- Federal corporate & business tax — IRS — Businesses.
- Self-employment tax (15.3%) — IRS — Self-Employment Tax.
- Pass-through & QBI deduction — IRS — Qualified Business Income Deduction.
- Small-business loans & SBA 7(a) — SBA — US Small Business Administration.
- Commercial lending rate data — Federal Reserve — H.15 Selected Interest Rates.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
Select the question that matches where you are right now.
Your result shows the projected growth or return based on the rate, contribution, and time period you entered — using standard compound or simple interest formulas.
Use this to set savings targets, compare investment options, or understand the impact of starting earlier. Adjust the rate and timeframe to model optimistic and conservative scenarios.
Not a guaranteed return. Actual investment outcomes depend on market conditions, fees, taxes, and timing that cannot be predicted with certainty.
Uses standard financial formulas with the inputs you provided. All calculations run in your browser — no data is sent to any server.
Savings and investment results are dominated by three factors: the rate of return, the time horizon, and regular contributions. Compounding amplifies all three over time.
Returns on returns accelerate growth over time. The difference between 5% and 7% over 20 years is much larger than the 2% gap suggests — compounding is non-linear.
Adding even small regular amounts dramatically increases the final balance. $100/week invested at 7% for 20 years grows to over $110,000 in contributions and $110,000+ in returns.
Starting 5 years earlier often produces a larger final balance than doubling your contribution rate. Time is the most powerful variable in savings calculations.
To improve your savings outcome, focus on starting earlier, increasing contributions, and minimising fees and tax drag on returns.
Starting with a small amount today and increasing over time beats waiting to start with a larger amount. Time in the market matters more than timing the market.
A 1% annual fee on a $100k balance costs $1,000/year and compounds against you. Compare fee structures across savings and investment products.
Super, offset accounts, and tax-free thresholds reduce the drag of tax on your returns — letting more of the growth compound for you.
Savings decisions connect to investment, tax, and retirement planning. Use these calculators to model the broader picture.
Work backwards from a target amount to see how much you need to save each month.
Savings goal →Model how an initial investment grows with regular contributions over different time periods.
Compound interest →See what your future balance is worth in today's dollars after adjusting for inflation.
Inflation calculator →