ROI Calculator
Enter what you put in and what it is worth now to see your total return on investment (ROI) and the annualized (per-year) return.
How to use the roi calculator
- Enter the total amount you invested, including fees.
- Enter the current or final value of the investment.
- Enter how long you held it — this unlocks the annualized return, which is the fairer comparison number.
Formula
About this calculator
ROI is the most universal performance metric because it needs only two numbers: what went in and what came out. Its weakness is that it ignores time. A 50% return over five years is far less impressive than 50% in one year, which is why this calculator also shows the annualized figure — the same math used for CAGR.
Include every cost in the "amount invested" figure: trading fees, taxes due on exit, maintenance, and for businesses, the full cost of the project. Excluding costs inflates ROI and makes bad projects look viable — a common trap in marketing and equipment purchases.
Use annualized ROI to compare unlike investments: a rental property held 6 years, an index fund held 10, and a 2-year side project are only comparable on a per-year basis. Absolute ROI tells you what happened; annualized ROI tells you how good the machine is.
Frequently asked questions
What is a good ROI?
It depends on risk and timeframe. Long-run stock market returns are roughly 7–10% annualized. A risky venture should clear that bar by a wide margin, or it is not paying you for the risk.
Why is annualized ROI lower than total ROI?
Because it spreads the gain across each year of the holding period. A 60% return over 5 years annualizes to about 9.9%, not 12%.
Can ROI be negative?
Yes — any time the final value is below the amount invested. The annualized figure then represents the average yearly loss rate.
Does ROI include dividends or income?
Only if you add them to the final value. For income-producing assets, add all received income to the final value before calculating.