ROI Calculator
Calculate return on investment from the amount invested and the final value, plus the annualized return (CAGR) for any holding period in years.
Results
- ROI = (final − invested) ÷ invested. Annualized ROI (CAGR) = (final ÷ invested)^(1 ÷ years) − 1.
What is ROI Calculator?
Shows the gain or loss, the total return on investment in percent and, if you enter the investment length, the annualized ROI (compound annual growth rate) so returns over different periods can be compared fairly.
How to use ROI Calculator
- Enter the Amount invested.
- Enter the Final value / amount returned.
- Optionally enter the Investment length in years to get the annualized ROI.
Example
1,000 invested, 1,500 returned after 3 years
ROI 50%, gain 500.00, annualized 14.47%
When to use ROI Calculator
Use it to evaluate any investment with a clear start and end value. It does not account for money added or withdrawn in between; for those cases use a time-weighted or money-weighted return method.
How ROI Calculator works
ROI = (final − invested) ÷ invested × 100. Annualized ROI (CAGR) = (final ÷ invested)^(1 ÷ years) − 1, which is the constant yearly rate that would turn the invested amount into the final value. Fractional years such as 1.5 are allowed.
Common Use Cases
- Comparing a 2-year and a 5-year investment
- Evaluating a marketing campaign's return
- Checking a property's overall gain
- Converting a total return to a yearly rate
FAQs
Why is the annualized ROI lower than ROI ÷ years?
Because gains compound. 50% over 3 years is 14.47% per year, not 16.67%, since each year's gain also earns returns.
Should I include fees and dividends?
Yes: subtract fees from the final value and add dividends received, so the final value reflects everything you got back.
Can the result be negative?
Yes. A final value below the invested amount gives a negative ROI and is labelled as a loss.