ROI Calculator
Enter the amount invested, the final value and the years held to see your ROI and your annualized return.
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Calculate return on investment and annualized return.
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How to calculate ROI
Return on investment (ROI) measures how much you gained or lost relative to what you put in: ROI = (final value − amount invested) ÷ amount invested × 100. If you invest $10,000 and it becomes $13,500, ROI is (13,500 − 10,000) ÷ 10,000 = 35%. Because ROI ignores time, a 35% gain in one year is very different from 35% over ten years. That is why this calculator also shows the annualized return when you enter the years: (final ÷ invested)^(1 ÷ years) − 1. The same $10,000 growing to $13,500 over 3 years is about 10.5% a year.
Examples
| Invested | Final value | Years | ROI | Annualized |
|---|---|---|---|---|
| $1,000 | $1,200 | 1 | 20.0% | 20.0% |
| $5,000 | $6,500 | 2 | 30.0% | 14.0% |
| $10,000 | $13,500 | 3 | 35.0% | 10.5% |
| $25,000 | $40,000 | 5 | 60.0% | 9.9% |
| $10,000 | $8,000 | 2 | -20.0% | -10.6% |
- Include all costs: fees, taxes and extra money you added change the true ROI.
- Compare over the same period: use the annualized return to compare investments held for different lengths of time.
- Negative ROI: a final value below the amount invested gives a loss, shown as a negative percentage.
ROI is a simple measure and not financial advice. See also the CAGR calculator, the investment calculator and the compound interest calculator.
How to use the ROI calculator
- Enter the amount you invested and the final value.
- Optionally enter the years you held the investment.
- Read your ROI, your profit or loss and the annualized return.
Frequently asked questions
How do you calculate ROI?
Subtract the amount invested from the final value, divide by the amount invested and multiply by 100. $10,000 turning into $13,500 is a 35% ROI.
What is a good ROI?
It depends on the risk and the time. Compare the annualized return with alternatives such as savings accounts or market index returns, and remember past results do not guarantee future ones.
What is the difference between ROI and annualized return?
ROI is the total gain as a percentage and ignores time. The annualized return converts it into a yearly rate, so investments held for different periods can be compared.
Can ROI be negative?
Yes. If the final value is lower than the amount invested, the ROI is negative and shows a loss.
Does ROI include fees and taxes?
Only if you include them in the numbers. Subtract fees and taxes from the final value for a more realistic ROI.
Related tools: CAGR calculator · Investment calculator · Dividend calculator