Measure investment performance: total ROI plus the annualized return so you can compare across time periods.
How the ROI Calculator works
ROI = (final value − initial) ÷ initial × 100. The calculator also annualizes it so different time periods can be compared.
Example calculation
Turning $10,000 into $15,000 over 3 years is a 50% total ROI and roughly 14.5% annualized.
Tips for using the ROI Calculator
- Always compare investments by annualized return.
- Include fees and taxes in the values.
- High ROI with high risk isn't automatically better.
ROI Calculator — frequently asked questions
- Total vs annualized ROI?
- Total ignores time; annualized shows the yearly equivalent rate, better for comparisons.
- Does it include costs?
- Include fees and taxes in the initial/final values for a true picture.
- Total vs annualized ROI?
- Total ignores time; annualized expresses it as a yearly rate for fair comparison.
- Does ROI show risk?
- No — pair it with a measure of volatility or downside.
Related calculators
Markup Calculator · Profit Margin Calculator · Break-Even Calculator · CAGR Calculator · Sales Tax Calculator · VAT Calculator