Calculate ROI and annualized return.
Enter the initial amount you invested, the final value of your investment (what it is worth now or when you sold it), and the number of years you held the investment.
The calculator shows your total ROI as a percentage (how much you gained or lost overall) and the annualized ROI (the equivalent yearly return rate). Annualized ROI is especially useful for comparing investments held for different lengths of time.
Return on Investment:
Total ROI = ((Final Value − Initial Investment) / Initial Investment) × 100%Annualized ROI:
Annualized ROI = ((Final Value / Initial Investment)^(1/Years) − 1) × 100%Example: You invested $10,000 and sold for $18,500 after 5 years:
Example 2: $50,000 invested, now worth $42,000 after 2 years:
It depends on the investment type and risk. The stock market historically averages about 10% annually. Real estate typically returns 8–12% including appreciation and rental income. A good ROI is one that beats inflation (3%) and compensates for risk taken.
Total ROI does not account for time. A 50% return over 10 years is less impressive than 50% over 2 years. Annualized ROI converts any total return into an equivalent annual rate, making different investments comparable.
This basic calculator uses the initial and final values. For a complete picture, include all dividends, distributions, and capital gains in your final value, and add all fees and commissions to your initial investment amount.