Calculate ROI, CAGR and annualized return on your investments
What is CAGR?
CAGR (Compound Annual Growth Rate) is the annual growth rate an investment would have needed to grow from an initial value to a final value, assuming profits are reinvested. It is the most important metric for comparing different investments over different time periods.
Annualized return (CAGR)
+8.45%
per year over 5 year(s)
CAGR
+8.45%
Total profit
+5,000.00 €
Holding period
5 year(s)
Total return
+50.00%
Profit/loss
5,000.00 €
Important note
These calculations are for non-binding information only and do not replace professional tax advice. All information without guarantee. Learn more
Our calculations are based on the following official sources (as of: July 2026):
Statistical data on salaries and the economy
Professionally calculate the performance of your investments
With our investment return calculator you can work out the actual performance of your investments. The calculator determines key metrics such as ROI, CAGR and total return, taking into account costs, taxes and inflation.
Return is the yield on a capital investment, expressed as a percentage of the capital invested. It shows how profitable an investment was or will be.
ROI measures the total return of an investment relative to the capital invested:
| Item | Amount |
|---|---|
| Formula | ROI = (profit / investment) x 100% |
| Investment | €10,000 |
| Sale value after 5 years | €15,000 |
| Profit | €5,000 |
| ROI | 50% |
CAGR is the average annual growth rate. It is the most important metric for comparing investments with different holding periods:
| Item | Amount |
|---|---|
| Formula | CAGR = (final value / initial value)^(1/years) - 1 |
| Initial value | €10,000 |
| Final value after 10 years | €20,000 |
| Holding period | 10 years |
| CAGR | 7.18% p.a. |
Important: CAGR smooths out fluctuations and shows the constant annual growth rate that would be needed to get from the initial value to the final value.
Total return takes into account all earnings: price gains and distributions (dividends, interest):
| Item | Amount |
|---|---|
| Formula | Total return = (final value + distributions - initial value) / initial value x 100% |
| Initial value | €10,000 |
| Final value | €15,000 |
| Distributions | + €2,000 |
| Total return | 70% |
Taking capital gains tax into account
Capital gains in Germany are taxed with the capital gains tax (Abgeltungssteuer):
Taking inflation into account
The nominal return shows the absolute profit. The real return takes into account the loss of purchasing power due to inflation:
| Item | Amount |
|---|---|
| Formula | Real return = (1 + nominal) / (1 + inflation) - 1 |
| Nominal return | 7.00% |
| Inflation rate | 2.00% |
| Real return | ~4.90% |
Warning: An investment with a 2% return at 3% inflation results in a real loss of purchasing power!
Historical averages (no guarantee for the future)
The most important lever for long-term wealth building
Compound interest is the most important lever for long-term wealth building. The longer the investment period, the stronger the effect:
| Item | Amount |
|---|---|
| Initial capital | €10,000 |
| Final value | €19,672 |
| Doubling time | ~10 years |
| Item | Amount |
|---|---|
| Initial capital | €10,000 |
| Final value | €38,697 |
| Doubling time | ~20 years |
| Item | Amount |
|---|---|
| Initial capital | €10,000 |
| Final value | €76,123 |
| Doubling time | ~30 years |
Rule of 72: Divide 72 by the return (in %) to get the approximate doubling time. At 7% return: 72/7 = 10 years.
Every percentage point of costs reduces your effective return
Example: With a 7% gross return and 1.5% costs, only 5.5% net remains. Over 30 years, that makes a difference of over €30,000 on a €10,000 initial investment!
These calculations are for illustrative purposes only and do not replace professional financial advice. Past returns are no guarantee of future earnings. There is always a risk of loss when investing.
Everything you need to know about the investment return calculator
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