ROI Calculator
Calculate return on investment as a total percentage and an annualized rate from your cost, final value, and holding period.
Independently verified for accuracy
Calculator by Toolsloft ↗- Total gain
- $5,000.00
- Total ROI
- 50.00%
- Annualized ROI
- 14.47%
This calculator finds the return on an investment as a total percentage and as an annualized rate. Enter what you put in, what it is worth now, and how long you held it to compare deals on an apples-to-apples yearly basis.
How this is calculated
Total ROI is the gain divided by the initial investment. The annualized return is the compound annual growth rate, found by raising the value ratio to the power of one over the number of years and subtracting one. A loss returns a negative result.
How to use
- Enter the amount you invested.
- Enter the current or final value of the investment.
- Enter the holding period in years, then read the total and annualized return.
Examples
- $10,000 to $15,000 over 3 yr:
50% total, 14.47% per year - $5,000 to $4,500 over 2 yr:
-10% total
FAQ
- What is the difference between total and annualized ROI?
- Total ROI is the overall percentage gain regardless of time. Annualized ROI spreads that gain across the holding period as a compound yearly rate, which lets you compare investments held for different lengths of time.
- How is annualized return calculated?
- It is the compound annual growth rate: (final value / initial investment) raised to the power of 1 divided by the number of years, minus one, times 100.
- Can ROI be negative?
- Yes. If the final value is below what you invested, both the total and annualized returns are negative.