ROI Calculator
Measure the return on your investment. Enter your initial investment and final value to see ROI percentage, net profit, and annualized return.
Return on Investment
+50.0%
Net Profit/Loss
$5,000.00
Annualized Return
14.5%/yr
Total Return
$15,000.00
How to Use This Calculator
- 1.Enter the amount you initially invested.
- 2.Enter the current or final value of the investment.
- 3.Enter the holding period in years to see annualized return.
The Formula
ROI = (Final Value - Initial Investment) / Initial Investment × 100
Annualized ROI = ((Final / Initial)^(1/years) - 1) × 100
Example Calculation
You invest $10,000 in stocks and after 3 years it's worth $15,000:
- Net profit: $15,000 - $10,000 = $5,000
- ROI: $5,000 / $10,000 = 50%
- Annualized: (1.5)^(1/3) - 1 = 14.5%/year
Why This Matters
ROI is the most straightforward way to evaluate whether an investment was worthwhile. The annualized return lets you compare investments of different durations on a level playing field — a 50% return over 3 years (14.5%/yr) is very different from a 50% return over 10 years (4.1%/yr).
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Compare BrokeragesFrequently Asked Questions
What is a good ROI?
It depends on the investment type. For stocks, 7-10% annually is solid (matching historical S&P 500 returns). For real estate, 8-12% is common. For business investments, anything above your cost of capital is positive.
Does ROI account for inflation?
No. This calculator shows nominal ROI. To get real (inflation-adjusted) ROI, subtract the inflation rate from your annualized return.
What's the difference between ROI and annualized return?
ROI is the total return over the entire period. Annualized return normalizes it to a yearly rate, making it easier to compare investments held for different lengths of time.
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