# Crypto Calculator

The crypto calculator below can show you returns on past investments. It also offers projected investment returns. You can use it to measure annual returns in order to see whether certain crypto holdings are worthwhile.

To find total and annual returns, all you have to do is enter the starting value in U.S. dollars of your crypto holdings and the ending amount. Then below that, you can select the time frame. This investment tool will automatically update and deliver your results.

## Our Simple Crypto Calculator Explained

In the business and investing world, you’ll often hear the term ROI. This is an initialism that stands for “return on investment.” By calculating your ROI, you can get better at focusing on the investment opportunities that offer the most promising returns.

That being said, it can be hard to quantify returns when looking forward. But it’s worth the effort. By back-testing previous returns, you’ll become better at projecting future returns. And this crypto calculator is perfect for learning how to do both.

Now, we’ll explain a little bit about what’s happening behind the scenes of this useful tool. Our crypto calculator above has a few formulas behind it…

### Investment Gain (\$)

This is the most straightforward calculation. It’s simply the final amount entered minus the starting amount. In other words, it’s how much money your crypto investment has made. But while total investment gains in terms of dollars is nice to know, as a stand-alone figure, it doesn’t offer much insight into profitability. That’s why we’ve included two other results in the crypto calculator. And we’ll further explain them next.

### Total Return on Investment

The formula behind this result is almost as simple as the one above. It’s the final amount you enter divided by the starting amount. And that result is then multiplied by 100 and turned into a percentage.

The end figure is the total return on your investment as a percentage. Next up is our crypto calculator’s annual growth rate…

### Compound Annual Growth Rate

To figure this one out, the calculator uses the compound annual growth rate (CAGR) formula. Here’s what that looks like…

((Ending Amount ÷ Starting Amount)^(1 ÷ Number of Years) – 1 ) * 100

There are more steps to this one because it has to factor in different time frames. But the result can be more useful. It helps when comparing multiple crypto investments to each other.

These are core financial concepts. Whether you’re a crypto investor, learning the stock market or just learning about the business world, the knowledge packed in our crypto calculator can come in handy.

And if you want to learn more about investing – or finance in general – we suggest signing up for these free investment e-letters. They’re packed with easy-to-understand insight from investing experts.

Please reach out if you have any questions about our crypto calculator. And feel free to bookmark this page, as well as share it with friends and family. For a next step, you can check out our more detailed Investment Calculator. It’s also free, and it shows you how big your portfolio can grow in five, 10 or 20 years.

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