ROI Calculator
Calculate your return on investment and annualized return rate.
Total ROI
0%
Annualized Return
0%
Profit / Loss
$0
How to Use the ROI Calculator
Enter your initial investment amount, the final value of your investment, and the time period. The calculator will show your total ROI, annualized return, and absolute profit or loss.
Understanding ROI
ROI is one of the most important metrics for evaluating investments. It tells you how much money you made (or lost) relative to what you invested. A higher ROI means a more profitable investment.
ROI Formula
ROI = ((Final Value - Initial Investment) / Initial Investment) × 100
For example, if you invested $10,000 and it grew to $15,000, your ROI is 50%.
When to Use Annualized Return
Annualized return is useful when comparing investments with different time periods. An investment that returned 50% over 5 years is very different from one that returned 50% in 1 year. Annualized return levels the playing field.
Limitations of ROI
ROI doesn't account for risk, inflation, or taxes. Two investments with the same ROI might have very different risk profiles. Always consider these factors alongside ROI when making investment decisions.