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ROI Calculator

Calculate return on investment: total ROI, annualized ROI and net profit, using a holding period or exact dates. Add costs, income and tax, compare with a benchmark return, or find the sale price a target ROI needs.

Calculate

Initial investment

Final value

Target ROI

Holding period

Years held

Bought / invested on

Sold / valued on

Extra costs (fees, commissions, repairs)

Income received while holding (dividends, rent, interest)

Tax on the profit

Compare with an annual return of

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How it works

ROI = (returned − invested) ÷ invested × 100 · invested = initial + costs · returned = final value + income · Annualized ROI = (returned ÷ invested)^(1 ÷ years) − 1 · years = days ÷ 365.25

Total ROI is the simple percentage gain or loss on your money. Annualized ROI restates that as an equivalent steady yearly rate (the same idea as CAGR), which is what lets you compare investments held for different lengths of time: a 50% return over two years is not as good as 50% in one year. Enter the holding period as a length or as two dates; dates are converted with 365.25 days a year. Under More options, extra costs such as commissions or repairs are added to what you invested, income such as dividends or rent is added to what you got back, a tax rate shows the after-tax result, and a benchmark rate shows what the same money would have become at a steady return. Switch Calculate to "Final value needed" to work out the sale price or value that a target ROI requires.

Worked example

Turn $1,000 into $1,500 over 2 years: net profit is $500 and total ROI is 500 ÷ 1,000 = 50%. Annualized, that is (1,500 ÷ 1,000)^(1 ÷ 2) − 1 ≈ 22.47% a year. With a 15% tax on the profit you keep $425, an ROI of 42.5%. The same $1,000 at a steady 7% a year would have grown to $1,144.90, so this investment beat that benchmark by $355.10. Doubling your money between January 1, 2020 and January 1, 2024 (1,461 days, or 4 years) is a 100% ROI and about 18.92% a year.

Frequently asked questions

Total vs annualized ROI — which should I quote?

Annualized, whenever the holding periods differ. Total ROI flatters long holds; annualizing puts every investment on a per-year footing for a fair comparison.

Does ROI account for risk, fees or taxes?

Not by itself. ROI is a pure return number, and two investments with the same ROI can carry very different risk. Add commissions and other costs and a tax rate under More options so the result reflects what you actually keep.

What is a good ROI?

It depends on the asset and the risk. As a reference, the US stock market has averaged roughly 10% a year before inflation over the long run — around 7% after. Enter a benchmark rate to see whether your investment did better than that alternative.

How do I find the price I need to sell at?

Choose Calculate: Final value needed and enter the ROI you want. For example, a $1,000 investment with $50 of fees needs a sale price of $1,260 for a 20% ROI.

What if I added money over time?

Simple ROI assumes one amount in at the start and one amount out at the end. If you made several deposits or withdrawals, use an IRR or average-return calculation, which weights each cash flow by how long it was invested.