ROI Calculator
Measure the Return on Investment (ROI) as a percentage, plus the annualized return to compare investments of different durations.
Results
What is it?
Return on Investment (ROI) measures how much profit or loss an investment generated relative to its cost, expressed as a percentage. The annualized ROI further normalizes the return to a per-year basis, making it easy to compare investments held for different lengths of time.
How to use
1. Enter the amount you originally invested. 2. Enter the current or final value of your investment. 3. Enter how long you held the investment in years (decimals are fine — e.g., 2.5 for two and a half years). The calculator returns the total gain, overall ROI percentage, and annualized ROI.
Example scenario
You invest $10,000 in a stock and sell it 3 years later for $15,000. Your total gain is $5,000, your ROI is 50%, and your annualized ROI is about 14.47% — meaning the investment grew at roughly 14.47% per year on a compound basis.
Pro tip
Annualized ROI is more meaningful than total ROI for comparing investments. A 50% return over 10 years is far less impressive than 50% over 2 years. Always annualize to compare apples to apples.