ROI Calculator
Calculate return on investment and your annualized return.
Investment details
Used for the annualized return. Set to 0 to skip it.
Total ROI
50.00%
Gain of $5,000.00
Annualized
14.47%
Net gain
$5,000.00
Investment vs gain
What does this mean?
Return on investment (ROI) measures how much an investment grew relative to what you put in, expressed as a percentage. It is the simplest way to compare investments, but on its own it ignores time — which is why this calculator also shows the annualized return.
The formula
Total ROI is ((final − initial) / initial) × 100. The annualized return smooths that gain across the holding period using ((final / initial)^(1 / years) − 1) × 100, telling you the equivalent steady yearly rate.
A quick example
Turn $10,000 into $15,000 over 3 years and your total ROI is 50%, but the annualized return is about 14.5% a year. Annualized return is the fair number to use when comparing investments held for different lengths of time.
Tip: a high total ROI earned slowly can be worse than a smaller ROI earned quickly — always check the annualized figure.
Frequently asked questions
What is a good ROI?+
It depends on the risk and time involved. Compare the annualized return against alternatives like a savings account or a broad index fund rather than judging the total percentage alone.
What's the difference between ROI and annualized return?+
Total ROI is the overall percentage gain regardless of time. Annualized return converts that into an equivalent yearly rate, so you can fairly compare investments held for different periods.
Can ROI be negative?+
Yes. If the final value is lower than the initial investment, ROI is negative, meaning you lost money on the investment.
Does this include fees or taxes?+
No. For a true picture, use the net amount you actually received after fees and taxes as the final value. This tool is for estimation only and is not financial advice.