ROI Calculator
Calculate return on investment (ROI) from your initial investment and final value, including net gain and annualized return.
How it works
ROI formula
ROI = (Final Value − Initial Investment) / Initial Investment × 100 Annualized ROI = ((Final Value / Initial Investment)^(1/years) − 1) × 100
ROI expresses profit as a percentage of what you originally invested, making different investments comparable. The annualized version accounts for how long the money was invested, which matters: 25% over one year is very different from 25% over ten years.
Worked example
You invest $10,000 and it grows to $12,550. ROI = (12,550 − 10,000) / 10,000 × 100 = 25.5%. If that took 3 years, the annualized return is about 7.87% per year.
Frequently asked questions
What is a good ROI?
It depends on the risk and time period. As a benchmark, the U.S. stock market has historically returned about 7–10% per year on average before inflation. Compare investments on annualized ROI, not total ROI.
Does ROI account for time?
Basic ROI does not — it only compares the start and end values. Enter a holding period above to see the annualized return, which does account for time.
Should I include fees and taxes?
Yes, for an accurate picture. Subtract fees from the final value and add purchase costs to the initial investment to get your true net return.