Return On Investment Calculator
Calculate ROI from what you paid and what you got back. Add the holding period to see the annualized return.
Return on investment compares the gain to the cost. It is the simplest way to judge any investment.
The annualized figure matters more. A 50% gain over two years is very different from 50% over twenty.
How it works
ROI divides net profit by total cost. Net profit is what came back minus everything you paid.
The annualized return converts that into a steady yearly rate. It is the compound rate that would have produced the same result.
The formula
Annualized = (Returned / Cost)^(1/years) - 1.
Tips
- Include every cost. Commissions, fees and taxes all reduce the real return.
- Compare annualized returns, never raw ROI, when holding periods differ.
Frequently asked questions
What is a good ROI?
It depends on the risk and the time. A 7% to 10% annualized return matches long run stock market averages.
Is ROI the same as CAGR?
No. ROI is the total return over the whole period. CAGR is the yearly compound rate that gets you there.
This is not financial advice. Nothing on this site is investment, tax, legal or financial advice of any kind.
The calculators give simplified estimates from the numbers you enter. They ignore taxes, fees, rate changes and real market returns, and they can be wrong.
Do not make financial decisions based on these results. Speak to a licensed financial adviser, accountant or lender before acting, and read the full disclaimer.