ROI Calculator
Return on investment (ROI) measures how much profit you earned relative to what you invested. This calculator shows your total ROI, net profit, and annualized ROI so you can compare opportunities fairly.
How it works
ROI is calculated as net profit divided by the initial investment, expressed as a percentage: ROI = (Final Value − Initial Investment) / Initial Investment × 100.
Because total ROI ignores time, this tool also computes annualized ROI using the compound growth formula: Annualized ROI = (Final Value / Initial Investment)^(1/years) − 1. This lets you compare a 3-year and a 1-year investment on equal footing.
Tips
Always include all costs in your initial investment — fees, commissions, and taxes can meaningfully lower real ROI.
A high total ROI over many years may be less attractive than a smaller ROI earned quickly. Focus on annualized ROI when comparing investments of different lengths.
FAQ
What is a good ROI?
It depends on the asset and risk. Historically, broad stock markets have returned roughly 7–10% annualized. Compare your annualized ROI to safe alternatives and the risk you took.
What's the difference between ROI and annualized ROI?
Total ROI is the overall percentage gain regardless of time. Annualized ROI converts that into an average yearly compound rate, making investments of different durations comparable.
Does ROI account for taxes and fees?
Only if you include them. For an accurate figure, add all buying/selling costs to your initial investment and use after-tax proceeds as the final value.