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ROI Calculator

Calculate the return on any investment. See your total ROI, annualized return, and profit or loss at a glance.

Calculator Inputs

$
$
5 yrs
1 yrs40 yrs

Total ROI

50.00%

Annualized ROI

8.45%

Profit

$5,000

Final Value

$15,000

Understanding Return on Investment

ROI measures how much money you gained or lost relative to your initial investment. A positive ROI means your investment grew; a negative ROI means you lost money. Total ROI shows the overall percentage gain, while annualized ROI shows the equivalent yearly rate of return.

The ROI Formula

Total ROI = ((Final Value - Initial Investment) / Initial Investment) x 100%. Annualized ROI = ((Final / Initial) ^ (1 / Years) - 1) x 100%. The annualized figure lets you compare investments of different durations on equal footing.

Why Annualized ROI Matters

A 50% total return over 10 years is very different from 50% over 2 years. Annualized ROI normalizes the comparison. The S&P 500 has historically returned roughly 10% annualized over long periods, making it a useful benchmark for evaluating other investments.

Take the Next Step

Now that you have the numbers, here are some ways to act on them.

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