ROI Calculator — Return on Investment & Annualized Return
Measure how an investment really performed. Enter what you put in, what you got back and how long it took to see total ROI and the annualized return, so you can compare investments held for different lengths of time.
Total ROI
How to calculate ROI
- Enter the amount invested and what it is worth now (or what you sold it for).
- Add any income received, such as dividends, interest or rent, and subtract fees.
- Enter how long you held it to get the annualized return.
ROI vs annualized return
ROI is net gain divided by the amount invested: (final value + income − costs − investment) ÷ investment. It is simple and works for any kind of investment, from stocks to equipment or a marketing campaign.
Its weakness is that it ignores time: 50% over 2 years is much better than 50% over 10. The annualized return (compound annual growth rate, CAGR) solves that by finding the steady yearly rate that would turn your investment into the final amount over the period. Use it to compare investments held for different lengths of time.
The rule of 72 is a handy check: divide 72 by the annual return to estimate how many years money takes to double. At 8% a year, that is about 9 years. Remember that past returns do not guarantee future results, and inflation reduces real returns.
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Frequently asked questions
What is a good ROI?
It depends on risk and time. Broad stock markets have historically averaged roughly 7–10% a year before inflation; compare against alternatives with similar risk.
What is CAGR?
Compound annual growth rate: the constant yearly return that would produce the same overall result.
Should I include dividends?
Yes. Income received is part of your return; leaving it out understates performance.
Can ROI be negative?
Yes. A negative ROI means you lost money after income and costs.