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ROI Calculator

Measure how much an investment gained or lost relative to its cost, and compare investments held for different lengths of time with annualized ROI.

$
Total cost, including fees and commissions.
$
Sale proceeds or current value, plus any income received.
years
Adds the annualized return, so different time frames can be compared.

Results

Return on investment25%over 3 years
Net gain$2,500.00
Annualized ROI7.72%
Amount invested
$10,000.00
Amount returned
$12,500.00
Investment multiple
1.25×

How it works

  1. Enter the total amount you invested, including costs.
  2. Enter the total amount you received back or the current value.
  3. Optionally enter how many years you held the investment to see the annualized return.

Formula

ROI = (Returned − Invested) ÷ Invested × 100
Annualized ROI = ((Returned ÷ Invested)^(1 ÷ years) − 1) × 100

Annualized ROI is the constant yearly growth rate (CAGR) that turns the invested amount into the returned amount over the given period.

Example

You bought shares for $8,000 including fees and sold them 4 years later for $11,200.

Inputs

Amount invested
$8,000
Amount returned
$11,200
Holding period (optional)
4 years

Result

Return on investment40%over 4 years
Net gain$3,200.00
Annualized ROI8.78%
Load this example into the calculator →

Why annualized ROI matters

A 25% return sounds strong, but it means something very different over one year than over ten. Annualized ROI converts any holding period into an equivalent yearly rate so you can compare investments fairly.

Frequently asked questions

What is a good ROI?

It depends on risk and time. Broad stock market indices have historically returned roughly 7–10% per year before inflation, so many investors use that range as a benchmark.

Should I include fees in the amount invested?

Yes. Commissions, taxes and other costs reduce your real return, so include them in the amount invested (or subtract them from the amount returned).

Can ROI be negative?

Yes. If you get back less than you invested, ROI is negative and shows the percentage lost.

What is the difference between ROI and annualized ROI?

ROI measures the total return over the whole period. Annualized ROI expresses that return as a compound yearly rate.