Calculate return on investment, net profit and annualized ROI from what you invested and got back.
Return on investment (ROI) measures the gain or loss on an investment relative to its cost. Enter the amount invested and the amount returned to see your ROI, net profit and annualized return.
An ROI calculator measures how much an investment earned relative to its cost.
Enter the amount you put in and the amount you got back, and it returns the
return on investment as a percentage, the net profit in money, and — if you add
a holding period — the annualized ROI.
Plain ROI is great for a quick verdict, but it ignores time: a 50% return over
one year is far better than the same 50% over five. Annualized ROI fixes that by
restating the gain as a steady yearly rate, letting you compare very different
investments on equal terms.
How to use
Enter the amount you invested.
Enter the amount you got back.
Optionally add the years held for an annualized ROI.
Formula
ROI is net profit as a percentage of the amount invested; annualizing spreads it over the holding period.
A $1,000 investment returning $1,500 is a 50% ROI and a $500 net profit.
Frequently asked questions
What is a good ROI?
It depends on the investment and risk. As a benchmark, the stock market has historically returned roughly 7%–10% per year on average over the long run.
Why calculate annualized ROI?
Total ROI does not account for time. Annualized ROI converts the total return into a per-year rate so you can compare investments held for different lengths of time.
Does ROI include fees and taxes?
Only if you include them. For a true picture, use the net amount returned after fees and taxes as the amount returned.