ROI Calculator
Calculate return on investment, net profit, and annualized return from an initial and final value.
How ROI is calculated
Return on investment (ROI) is (final value − initial investment) ÷ initial investment × 100.
It tells you the total percentage gain or loss over the life of the investment, regardless of how
long you held it.
Why annualized return is different
A 40% ROI sounds great — but it means something very different over 1 year versus 10 years. Annualized return spreads that total gain evenly across each year (technically, it's the compound annual growth rate), which makes it possible to fairly compare investments held for different lengths of time. Add an investment length above to see it.
Frequently asked questions
What counts as a "good" ROI?
It depends entirely on the asset class, risk, and time period — there's no universal benchmark. A 10% ROI over one month is excellent; the same 10% over ten years is not.
Should I include fees and costs in the initial investment?
Yes, for an accurate figure — include any purchase fees, commissions, or transaction costs as part of your initial investment.
What's the difference between ROI and annualized return?
ROI is the total percentage gain or loss over the whole holding period, regardless of length. Annualized return spreads that same gain evenly across each year, which makes it possible to fairly compare investments held for different lengths of time.
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