ROI Calculator
Calculate total and annualized return on investment.
Inputs
Output
Fill in the initial and final values to see the return.
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About ROI Calculator
The ROI Calculator measures how much an investment gained or lost relative to what you put in. Add the number of years and it also calculates the annualized return, which lets you compare investments held for different lengths of time.
How to use it
- Enter the initial value of the investment.
- Enter the final value.
- Optionally enter how many years you held it.
- Read the total return, and the annualized return if you entered a time period.
Good to know
- Total return is the gain divided by the initial value. Growing from 10,000 to 15,000 is a 50% total return.
- Annualized return is the steady yearly rate that would produce the same result. A 50% gain over 3 years is roughly 14.5% per year.
- Include any income received, such as dividends or rent, in the final value to get a complete picture.
- Results are estimates for planning and comparison. They are not financial advice, and a lender or adviser may calculate figures differently.
Common questions
Why is annualized return lower than total return divided by years?
Annualized return accounts for compounding. Each year's growth builds on the last, so a smaller steady rate is enough to reach the same total.
Can ROI be negative?
Yes. If the final value is lower than the initial value, the tool shows a negative return, meaning a loss.