Choosing the right tool
Choose the denominator and time convention before comparing investments. ROI includes entered costs; CAGR assumes no intermediate cash flows; present value discounts a single amount.
Distinguish total return, annualized growth and the time value of money.
Estimate how an initial investment and regular deposits grow at a fixed interest rate.
Open calculatorMeasure total growth and the constant annual rate equivalent to an investment’s change in value.
Open calculatorTranslate a single amount between today and a future period using a consistent discount or growth rate.
Open calculatorInclude both the initial outlay and additional costs when comparing an investment’s return.
Open calculatorChoose the denominator and time convention before comparing investments. ROI includes entered costs; CAGR assumes no intermediate cash flows; present value discounts a single amount.