ROI Calculator
Calculate return on investment as a percentage and annualized rate.
Results
ROI (return on investment) measures how much you gained or lost relative to your initial investment. This calculator shows both the total ROI percentage and the annualized return, which lets you compare investments of different durations on an equal basis. A 50% return in 1 year is very different from 50% over 10 years.
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Frequently asked questions
ROI = (Current Value - Cost) / Cost × 100. If you invested $10,000 and it is now worth $15,000, ROI = ($15,000 - $10,000) / $10,000 × 100 = 50%.
Annualized return converts any holding period to a yearly rate for comparison. It uses the formula: (Final/Initial)^(1/years) - 1. A 50% total return over 3 years is about 14.5% annualized.
It depends on the asset class. The S&P 500 averages about 10% per year. Real estate averages 8-12% including appreciation and rental income. A good ROI beats inflation (3-4%) and ideally beats index fund returns.
Only if you include dividends in the current value. For a complete picture, add all dividends received to the current value before calculating. This gives you 'total return' rather than just price return.
Use the annualized return. Investment A with 30% over 2 years (14% annualized) outperforms Investment B with 40% over 4 years (8.8% annualized), even though B has a higher total return.