ROI Calculator
Calculate return on investment: total ROI, annualized ROI and net profit from what you put in and got back.
How it works
Total ROI = (final − initial) ÷ initial · Annualized ROI = (final ÷ initial)^(1 ÷ years) − 1
Total ROI is the simple percentage gain or loss on your money. Annualized ROI restates that as an equivalent steady yearly rate, which is what lets you compare investments held for different lengths of time. A 50% total return over two years is not as good as 50% in one year, and annualizing makes that clear.
Worked example
Turn $1,000 into $1,500 over 2 years: total ROI is 50% and net profit is $500. Annualized, that is (1,500 ÷ 1,000)^(1 ÷ 2) − 1 ≈ 22.47% 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 or fees?
No. ROI is a pure return number. Two investments with the same ROI can carry very different risk, and fees or taxes reduce what you actually keep.
What is a good ROI?
It depends on the asset and risk. As a reference, the US stock market has averaged roughly 10% a year before inflation over the long run — around 7% after.
Related calculators
This is an educational estimate, not financial advice. Confirm figures with your lender, advisor or tax professional.