Return on Investment (ROI) Calculator
Calculate the total and annualized return on an investment.
Gain / loss: 500
Total return: 50%
Initial vs. final value
About this tool
Return on investment (ROI) measures how much an investment has gained or lost relative to what you originally put in, expressed as a percentage — one of the most widely used ways to judge whether an investment performed well.
A simple ROI percentage doesn't account for how long the money was invested: a 20% return over one year is very different from a 20% return over ten years. This calculator also computes the annualized return (CAGR), which lets you fairly compare investments held for different lengths of time.
This tool works for any investment — stocks, real estate, a business, or anything else — as long as you know the amount you put in and its current (or final) value.
Worked example
- 1Enter the initial amount invested and its current or final value.
- 2The gain or loss is the final value minus the initial investment; the ROI percentage is that gain divided by the initial investment.
- 3Optionally enter the number of years to also see the annualized return — the compound growth rate per year that would produce the same total return.
Formula
ROI % = ((Final value − Initial investment) / Initial investment) × 100. Annualized return = ((Final value / Initial investment)^(1/years) − 1) × 100
Related tools
Frequently asked questions
- What's the difference between ROI and annualized return?
- ROI is the total return over the whole investment period, regardless of how long that was. Annualized return spreads that same total return evenly across each year, making it possible to compare investments held for different lengths of time.
- Can ROI be negative?
- Yes — a negative ROI means the investment is worth less than what was originally invested, representing a loss.
- Does this account for fees or taxes?
- No — this calculates the raw return based on the amounts you enter. Trading fees, management fees and taxes will reduce your actual net return.
- What counts as a good ROI?
- It depends heavily on the type of investment and time period — a good return for a savings account looks very different from a good return for a stock portfolio. Comparing the annualized return against a relevant benchmark is usually more meaningful than judging the number alone.