ROI Calculator
Enter the amount you invested, the amount you got back and how many years you held the investment. The calculator shows the net gain or loss, the total ROI and the annualized ROI, which is the yearly rate that turns the first amount into the second.
How to use the ROI Calculator
- Enter your numbers in the ROI Calculator above.
- Press the Calculate button to see the result.
- To try other numbers, change any value and press the button again.
The ROI formulas
Total ROI = (Returned − Invested) / Invested × 100 · · · Annualized ROI = ((Returned / Invested)^(1/years) − 1) × 100
Total ROI is the whole gain or loss as a share of what you put in. Annualized ROI spreads it over the holding period as a compound yearly rate, so investments held for different lengths of time can be compared. The years can include a fraction, such as 2.5. The net gain or loss is rounded to the cent.
Worked example
$10,000 grows to $18,000 over 6 years. The net gain is $8,000.00, the total ROI is 80% and the annualized ROI is 1.8^(1/6) − 1 = 10.29% a year. Another investment that turns $10,000 into $15,000 in 3 years has a lower total ROI of 50% but a higher annualized ROI of 14.47%.
Frequently asked questions
Why use annualized ROI?
To compare investments held for different lengths of time. A 50% return over 3 years annualizes to 14.47% a year. The same 50% over 5 years is 8.45% a year.
Does ROI account for risk?
No. ROI compares only the amount you got back with the amount you put in. It says nothing about how far the value swung along the way, so two investments with the same ROI can carry very different risk.
Should I include fees and taxes?
If you want the net return, yes. The calculator uses the two amounts exactly as you type them, so enter the amount you got back after fees and taxes, or add the fees to the amount invested.